02.09.2024. / 15:54
BERLIN – Volkswagen has said it can no longer rule out the possibility of closing factories in Germany as it looks for ways to save several billion euros in an attempt to cut costs.
Photo: Pixabay
The carmaker considers one major vehicle plant and one component plant in Germany obsolete, its works council said, vowing “fierce resistance” to the executive board’s plan.
Volkswagen said it felt compelled to end the job protection program that has been in place since 1994 and prevents layoffs until 2029.
“The situation is extremely tense and cannot be overcome by simple cost-cutting measures”General Manager of “Volkswagen” Thomas Schaefer stated in a written statement.
He added that all measures will be discussed with the workers’ council.
“Volkswagen”, which realizes the majority of vehicle sales of this automotive group, is the first to undergo cost reduction with the aim of saving ten billion euros by 2026.
Management is trying to rationalize spending so that the company can survive the transition to electric cars.
“The difficult economic environment, new competitors in Europe and the declining competitiveness of the German economy have meant that this car manufacturer has to work harder”said CEO of “Volkswagen Group” Oliver Blume. A doe
Source: www.capital.ba
