Volkswagen is undergoing a major restructuring that includes significant job cuts and plant closures in Germany. This drastic move aims to cut costs by 4 billion. euro and improve the company's competitiveness in the face of declining demand and increasing competition from Chinese car manufacturers.
The brand's CEO, Thomas Schaefer, stressed the urgency of these measures, saying the company could not afford to delay the restructuring process. He also highlighted the significant cost gap between German plants and those in other regions, with German plants being twice as expensive to operate.
Although the exact details of the restructuring plan are still being worked out, it is expected to include the closure of several German plants. The company is also considering converting its Emden plant into a contract manufacturing facility.
These proposed changes have sparked considerable controversy, with unions threatening strikes to protest job cuts and factory closures. Unions say there are alternative cost-cutting solutions that do not require such drastic measures.
The outcome of these negotiations will have far-reaching consequences for Volkswagen, its employees and the German automotive industry as a whole.