At least three factories closed, tens of thousands of jobs removed and Transversal salary cuts that can reach 10%. According to the main union of Volkswagen Group workers in Germany, these are the car manufacturer’s plans to restructure its operations, reduce costs and reverse the competitiveness crisis in which it finds itself.
Volkswagen management will have informed the unions about the restructuring plans, which also involve a reduction in activity at all other production units in Germany. The information was conveyed by the leader of the works council, Daniela Cavallo, who is also part of VW’s supervisory board, in a speech in Wolfsburg, cited by the Bloomberg agency.
Britain’s Financial Times reports on concrete plans to close factories and cut costs.
“This means eliminating even more products, quantities, shifts and entire assembly lines, going far beyond what we have done so far,” said Daniela Cavallo, adding that, in practice, this implies a “weakening of the performance of the company” and its activity.
Volkswagen CEO Oliver Blume recently referred to the group’s high operating costs, at a time when it is facing difficulties related to falling demand in Europe and intensifying competition from Chinese manufacturers. . Union leaders say workers will be forced to pay for the board’s mistakes, including a mismanaged transition to electric vehicles and poor trade policy.
Autoeuropa is one of the three favorites for Volkswagen to manufacture a low-cost electric car, says the German press
Source: Observadora
