Although this week Volkswagen proposed the closure of three factories in Germany to address the business crisis, the car manufacturer has come up with a new savings plan that could avoid the closures, reports Bloomberg. The last proposal It is based on a 10% reduction in employee salaries and a review of bonuses.
“We are open to addressing any type of discussion that allows us to achieve our financial objectives,” company representative and Volkswagen negotiator Arne Meiswinkel told reporters in Wolfsburg, where the automotive company’s headquarters in Germany are located. The statements came after negotiations this Wednesday with the unions.
Meiswinkel has defended that the reduction in salary, even if the 10% reduction is carried out, the payroll would still be attractive. The cut could affect to the 140,000 Volkswagen employees in Germany.
On Monday, the company was talking about closing at least three factories, something that has not happened in the company’s 87 years of history, so it would be the first time that a measure of this caliber has been taken. Furthermore, that same day, apart from the closures, the German firm spoke of layoffs and salary reviews. Therefore, this Wednesday’s approach It means lowering the tone somewhat compared to two days ago.
After the meetings this Wednesday, the union spokesperson, Daniela Cavallo, said that the latest approach is a small gesture, although the closure of plants is not yet completely ruled out. Volkswagen has maintained on previous occasions that Germany is increasingly a less attractive, less competitive industrial enclave.
Volkswagen has presented the worst quarterly results of the year, which reflect the weakness that the companies are going through. Profits have fallen 64%, to 2,860 million, below expectations. The operating margin was 3.8%, the lowest figure since the pandemic.
Sales from China, a big customer, have plummeted, while competition in Europe is getting stronger. Additionally, car companies are grappling with the transition to electric vehicles. Much slower than expected adoption forced the brand to change its production plans.
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