Nerves are on edge in Germany as Volkswagen holds meetings with workers and unions about possible cuts and plant closures in the country due to the difficulties in implementing the company’s ambitious energy transition plan. Chief Financial Officer Arno Antlitz and VW Brand Chief Thomas Schaefer will discuss the automaker’s plans in detail at the meeting at its headquarters in Wolfsburg.
Battle from the unions
Works Council Chairwoman Daniela Cavallo has already vowed to fight over the possible proposals that will be put on the table. As reported by Reuters, Volkswagen is considering closing factories in Germany and ending a decades-old job guarantee at six of its plants, in a drive to cut costs by 10 billion euros. The automaker is targeting a profit margin of 6.5% for the brand by 2026, up from 2.3% in the first six months of this year.
Volkswagen’s problems
Volkswagen’s unions and management in Germany are expected to negotiate a pay rise in October, but worker representatives want to move the issue forward and have a broad discussion about the automaker’s options, according to Thomas Knabel, a representative of the IG Metall union at Volkswagen’s Zwickau plant. While the company blames the crisis and the entry of new brands, especially from China, worker representatives have said the automaker’s production strategy is inefficient and that Volkswagen has been too slow in deciding to mass-produce an electric vehicle.
#Volkswagen #layoffs #factory #closures #unions #revolt #FormulaPassion.it
