Volkswagen is facing a difficult situation as factory workers announce they will go on strike from next month.
Financial problems, low sales of electric cars and the threat of Chinese manufacturers could force Volkswagen to take an unprecedented decision. right Engine1the Volkswagen Group is reportedly heading for a historic factory shutdown in Germany. Volkswagen CEO Thomas Schaefer believes it will take three to four years for the company to restructure, and this cannot happen without some significant cuts.
Schaefer said Volkswagen needs to cut costs and adapt to new circumstances. Schaefer went on to say that the company currently sees no way to achieve its goals without closing at least one plant. Currently, two factories in Germany are being targeted and are at risk of closure.
Volkswagen factory workers threaten to strike
Schaefer said employee attrition and early retirement packages won’t be enough to turn things around. Those who remain, including executives and board members, will almost certainly face pay cuts. Volkswagen executive salaries were already cut by 5% earlier this year.
In its 87-year history, Volkswagen has never closed a factory in its home country of Germany. With the first news of the possibility, local unions and leaders of Volkswagen’s works council, a group of employees that bridges the gap between union leaders and company leaders, have been pushing to avoid any kind of plant closing.
Employees could go on strike in December this year if Volkswagen decides to close one of its factories in Germany.
Source: www.promotor.ro
