Volkswagen explodes a bomb: announces tens of thousands of layoffs, layoffs and plant closures

Volkswagen announced this Monday that it is in extreme situationand this is the first time in his 87 years of history will close its plant in Germany. Nothing like this has ever happened before for a manufacturer that has accumulated successful growth in its home country. Now, as we can read in Expansión, it will not only close one, but also its three German factories. This movement, as it could not be otherwise, will be accompanied by significant reductions in the workforce.

At least that’s what the largest worker representative said, confirming that Volkswagen needs to cut costs”tens of thousands“jobs. In addition, the company also plans to add Reducing staff salaries by 10%. that it will remain after the layoffs.

In this sense, Danielle Cavallo, chief executive of the Volkswagen works council, said at the Wolfsburg plant that managers two days to revoke the decision on closure and layoffshinting at a possible wave of strikes across the country.

This is an unprecedented restructuring of operations in Germany, a country where the manufacturer continues to grow, open factories and hire employees. After 87 years of history, first closure of Volkswagen plant – in its home country – seems to be a reality, a milestone that predicts a difficult situation for all European manufacturers.

Volkswagen needs to introduce radical measures to combat China

“We need radical measures“, the company said, hinting that Competition from China is slowing its expansion and sales in markets around the world. Volkswagen holds the title of Europe’s largest car maker, and despite its huge portfolio, the company will face a costly transition to electric vehicles.

Fierce competition from China is rushing into the market with revolutionary prices and increasingly competent 100% electric vehicles, a milestone motivated by the Asian country’s great industry when it comes to electrification.

In a European market increasingly aware of electric mobility, there is little inclusion such as that of Volkswagen with its 100% EV catalogue. It doesn’t seem to be enough to compete with China or brands like Tesla.a situation that will slow down sales of the German conglomerate and motivate the announced restructuring.

For now everything remains as it is, well Volkswagen has not announced which plants will be selected close or the exact number of layoffs. In fact, it did not even confirm that only three plants were selected. We will have to wait to know the real situation and the corresponding movements.