Volkswagen (VW), Germany's largest automotive manufacturer, has announced plans to close at least three of its ten plants in the country. Daniela Cavallo, head of VW's works council, informed employees in Wolfsburg that all German facilities are affected, leaving job security in question for nearly 300,000 staff.
The announcement follows a 14% decline in net profit during the first half of the year and the termination of a long-standing job security agreement with unions. The IG Metall trade union has expressed strong dissatisfaction, describing the plans as a severe blow to the workforce.
Cavallo indicated that the proposed cuts would not only affect plant operations but also result in wage reductions and outsourcing of various departments. Employees fear significant job losses and reduced salaries, with potential cuts of up to 18% in compensation.
The next negotiation meeting with IG Metall is scheduled for Wednesday, where discussions on future employment concepts are expected to take place. The company is facing severe economic challenges, which have prompted these drastic measures.