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Volkswagen prepares major layoffs, to shut a minimum of three German plants, works council head states

Volkswagen plans to shut at least 3 factories in Germany, lay off tens of countless staff and completely shrink its staying plants in Europe's greatest economy as the continent's leading carmaker is plotting a deeperthanexpected overhaul, the works council head stated on Monday.

Management is definitely major about all this. This is not sabre-rattling in the cumulative bargaining round, Daniela Cavallo, Volkswagen's works council head, told numerous hundreds of staff members in Wolfsburg.

This is the plan of Germany's largest commercial group to begin the sell-off in its home country of Germany, Cavallo added, not specifying which plants would be affected or how many of Volkswagen Group's approximately 300,000 personnel in Germany could be laid off.

The comments mark a significant escalation of a dispute in between Volkswagen's employees and the group's management, which is under severe pressure to cut expenses and stay competitive due to weaker need from China and Europe.

Cavallo stated there was agreement in between both sides concerning the nature of the issues the carmaker, and a number of its European peers, deals with, varying from a slower-than-expected electrical shift to strong Chinese competitors going into Europe.

We are not far apart when it comes to analysing the issues. But we are miles apart on the responses to them.

(source: Reuters)