Wolfsburg, October 30, 2024 – The Europe Today: Volkswagen (VW) executives and labor leaders met on Wednesday as the company unveiled plans to address high costs and intensifying competition, following a sharp 64% drop in quarterly profits that has raised alarms about potential job cuts.
In the discussions, VW management proposed closing at least three German plants and reducing wages by 10%, alongside the possibility of laying off tens of thousands of employees. These proposed cuts come as Europe’s largest economy grapples with slow economic growth, further escalating concerns within the auto industry.
Union leaders voiced strong opposition, warning of potential strikes if plant closures remain part of the restructuring plan. Tensions also flared over wage reductions, adding to the conflict as VW navigates a challenging restructuring process.
Ahead of further talks on layoffs and wages, VW negotiator Arne Meiswinkel highlighted the company’s difficult position, acknowledging the urgent need for cooperation. “We now need joint and consistent action to find a viable and sustainable solution in the interests of our workforce and our company,” Meiswinkel stated.
Volkswagen CEO Oliver Blume attributed the restructuring plans to rising competition in European markets and Germany’s declining competitiveness as a manufacturing hub, stressing the necessity of “decisive action” to ensure VW’s long-term sustainability.
