Massive layoffs await at VW – plans to close three plants
The German automotive giant is planning to shut down at least three factories in Germany, resulting in the layoff of thousands of employees, Reuters reports citing the carmaker's works council.
For weeks, Volkswagen has been negotiating with unions about its intentions to restructure its operations and lower costs, including the first-ever consideration of closing plants in Germany.
"Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round," Daniela Cavallo, Volkswagen's works council head, told several hundreds of employees in Wolfsburg on Monday, Reuters reports.
According to Cavallo, both parties agree on the nature of the issues facing the automaker, including a slower-than-anticipated electric transition and intense competition from Chinese automakers making their way into the European market.
"We are not far apart when it comes to analysing the problems. But we are miles apart on the answers to them," he said.
It's yet unclear which factories would be impacted by the plans or how many of the approximately 300,000 employees of the Volkswagen Group in Germany may be let go.
