Written by Cláudio Afonso | LinkedIn | X
Volkswagen plans to close at least three manufacturing plants in Germany and lay off tens of thousands of workers, according to the company’s works council.
This would be the first time in Volkswagen’s 87-year history that it shuts down domestic production facilities.
Works council chair Daniela Cavallo informed employees about the plans at a meeting in Wolfsburg, indicating likely resistance from unions as Volkswagen pushes ahead.
“Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round. This is the plan of Germany’s largest industrial group to start the sell-off in its home country of Germany,” Cavallo told the employees on Monday.
The company has warned of drastic actions to handle competition from China, declining sales in other major markets, and the high costs of transitioning to electric vehicles.
The announcement follows the deportation of Volkswagen’s chief marketing officer for China, Jochen Sengpiehl, who was detained by Chinese authorities for drug use.
According to BILD, Chinese officials confirmed cannabis use during a test in Beijing after his return from Thailand, leading to over ten days in custody before his deportation.
(Story being updated)
Written by Cláudio Afonso | LinkedIn | X
