The announcements are not yet precise, but the extent of the surgery that the Volkswagen group will undergo was presented by the trade unionist and president of the works council, Daniela Cavallo, to several thousand employees gathered in front of the main factory, in Wolfsburg (Lower Saxony). “The board wants to close at least three factories in Germany”she declared during an information meeting on Monday, October 28. Dressed in a red down jacket, the elected official, who sits on the supervisory board, called on them to resist this “bleeding” unprecedented.
Europe’s largest automaker, which is also the largest employer in German industry, has been negotiating with unions for two months over its restructuring and cost-cutting plans. But, until now, it was a question of two and not “at least three” factories threatened. Mme Cavallo did not specify which or how many of the brand’s 120,000 employees in Germany – where the group, owner of Audi, Skoda and Porsche, employs a total of 300,000 people – could be made redundant. “All German factories are affected by these projects. No one is safe! »she warned, referring to relocation and outsourcing measures.
The most exposed site seems to be that of Osnabrück (Lower Saxony), Porsche having given up on producing a new model there. For the Inovev firm, specializing in automotive market research, the Dresden (Saxony) factory, practically at a standstill, could also be affected, as well as that of Emden (Lower Saxony), in slow motion since the The electric ID.7 replaced the Passat on the assembly lines. The Passat is now produced in Bratislava, Slovakia.
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Volkswagen is also demanding a 10% salary reduction, followed by a pay freeze over the next two years, in 2025 and 2026. Discussions on annual increases are due to resume on Wednesday October 30, when the group will also present its results for the third quarter of the year. “We expect that instead of these cost-cutting fantasies, Volkswagen and its management will come to the negotiating table with more viable concepts”, and defendant Thorsten Gröger, responsible for the IG Metall union in Lower Saxony.
“The situation is serious”
The automotive group recalls that it has been discussing with staff representatives since mid-2023, which made it possible to launch a productivity improvement program in December 2023. The deterioration of the market since the start of the year requires, according to management, a new, more global restructuring. It estimates that it would be necessary to sell 500,000 more cars per year for the production capacities of its factories to be fully used. “One thing is clear: the situation is serious and the responsibility of the social partners is immense. It is now a matter of working with employee representatives to preserve the future of Volkswagen AG (…) by making targeted investments in the future. Without comprehensive measures to restore our competitiveness, we will not be able to finance essential investments in the future”indicated, in a press release, Gunnar Kilian, member of the management board in charge of human resources.
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