Volkswagen intends to close at least three plants in Germany and cut tens of thousands of jobs, the leader of the firm’s works council, Daniela Cavallo, told VW employees at an event on Monday.
All remaining VW plants in Germany will be downsized under the plan from management, Cavallo added.
The VW plant in Osnabrück, which recently lost a hoped-for follow-up order from Porsche, is particularly at risk of closure, according to the works council.
VW executives are also planning mass layoffs, Cavallo said, with entire departments at risk of closure or relocation abroad.
“All German VW plants are affected by these plans. None of them are safe,” said Cavallo, without giving any further details.
VW employs around 120,000 people in Germany, around half of whom work at the brand’s headquarters and main plant in the northern German city of Wolfsburg.
The VW brand operates a total of 10 plants in Germany, six of which are in Lower Saxony, three in eastern state of Saxony and one in the western state of Hesse.
In September, VW terminated a long-standing job security deal with labour unions that had been in place for more than 30 years. Layoffs are now possible from mid-2025.
Volkswagen has never closed a plant in Germany, and has not closed a plant anywhere in the world in more than three decades.
The September announcement was major news across Germany, where it has been seen as a troubling sign for the country’s stuttering economy. Labour leaders have vowed to fight any cuts.
Executives from the Volkswagen Group, VW’s parent company, are scheduled to meet labour negotiators from the IG Metall trade union on Wednesday for a second round of talks on a new collective bargaining deal.
At an initial meeting in September, Volkswagen flatly rejected IG Metall’s demands for a 7% pay increase and insisted on savings instead. VW had not yet provided any further details.
But Cavallo said on Monday that VW is now demanding a 10% pay cut and no other pay raises for the next two years.
