Auto giant Volkswagen is no longer ruling out plant closures and compulsory redundancies in Germany as part of its cost-cutting programme at the core

VW says plant closures, job cuts possible as part of austerity drive

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2024-09-03 06:30:06

Auto giant Volkswagen is no longer ruling out plant closures and compulsory redundancies in Germany as part of its cost-cutting programme at the core VW brand, the company announced on Monday.

Management at VW said they would be cancelling a long-standing agreement with labour representatives in Germany that ruled out compulsory redundancies through the end of 2029. The deal has been in place since 1994.

The company said that executives believe the namesake Volkswagen brand must be comprehensively restructured and current efforts to reduce the workforce through early retirement packages and voluntary severance payments won't be enough to meet savings targets.

"Even closures of vehicle production and component plants can no longer be ruled out in the current situation without rapid countermeasures," VW announced.

VW has not yet given any concrete figures on how many of the comapny's roughly 120,000 jobs in Germany could be lost, or indicated which plants might be shuttered.