Volkswagen plans to close at least three German factories – workers’ council

Volkswagen has informed employee representatives that it wants to close at least three factories in Germany, the head of the company’s works council said.

The head of the works council, Daniela Cavallo, said at a meeting with Volkswagen employees at the company’s headquarters in Wolfsburg that management is also planning cuts at other locations, and vowed to oppose the plans, German news agency dpa reported.

She said that “all German VW factories are affected by these plans. No one is safe.”

The company did not provide details of its plans, but chief human resources officer Gunnar Kilian said in a statement that “the fact is that the situation is serious and the responsibility of the negotiating partners is enormous,” dpa reported.

Volkswagen said in early September that headwinds in the auto industry mean it cannot rule out factory closures in its home country and must drop a job protection pledge in place since 1994 that would have ruled out layoffs until 2029.

CEO Oliver Blume cited new competitors entering European markets, Germany’s deteriorating position as a manufacturing location and the need to “act decisively.”

“Without comprehensive measures to restore competitiveness, we will not be able to afford significant future investments,” Kilian said.

He added that management will adhere to the principle of first discussing Volkswagen’s future with its internal negotiating partners.

Wage negotiations between Volkswagen and the union will resume on Wednesday.

European car manufacturers are facing increasing competition from cheap Chinese electric cars. Volkswagen said last month that the company’s half-year results showed it would miss its target of 10 billion euros in cost savings by 2026.

Volkswagen has about 120,000 employees in Germany, where it has ten factories, six of which are in the northern state of Lower Saxony, including Wolfsburg.

The IG Metall union has sharply criticized VW’s reported closure plans.

“We expect Volkswagen and its management to outline sustainable concepts for the future at the negotiating table instead of austerity fantasies,” said regional union leader Thorsten Groger.