Volkswagen to close three plants in Germany, lay off tens of thousands of employees: union chief

“The management is absolutely serious. This is not saber-rattling in negotiations. <...> Germany’s largest industrial group plans to launch a sale [активов] in their country of origin,” Cavallo said. It did not specify which factories would be closed or exactly how many of the roughly 300,000 employees would be laid off.

According to Reuters, Europe’s largest automaker has been negotiating with unions for several weeks to reorganize its business and reduce costs. Volkswagen is looking for ways to cut costs amid falling demand for its cars in China and Europe, the agency says.

Representatives of the car manufacturer also call on the German authorities to take measures to support the national economy, which is in decline for the second year in a row, Reuters writes. Cavallo said Berlin urgently needs to develop a master plan for the development of German industry so that it does not decline completely.

A German government spokesman told Reuters that authorities were aware of Volkswagen’s difficulties and were in close dialogue with the company and employees. According to him, the first priority now is to preserve employment. Volkswagen has promised to present a cost-cutting plan on Wednesday, October 30, when workers and management meet for a second round of negotiations.

• In September, the carmaker’s boss, Oliver Blume, said the Western car industry was in “a very difficult situation, never seen before.” According to the senior manager, for Volkswagen to increase its profits to 10 billion euros in 2026, it needs to save about 5 billion euros in expenses.

• At the end of the first quarter of 2024, the automaker’s sales decreased by 2%, to 2,081 million vehicles, compared to 2,124 million in the same period of 2023, and revenue decreased by 1%, to 75.5 billion euros, compared to 76.2 billion euros last year. same period of the previous year, the company indicated in its report.