Volkswagen Plans to Close Three German Factories and Cut Thousands of Jobs

One of the World’s Biggest Carmakers Responds to Financial Troubles 

Volkswagen’s future in Germany may be on the line as it faces plunging revenues and fierce competition from Chinese electric car makers. After two profit warnings in three months, Volkswagen’s management is proposing drastic changes to regain stability. These include closing three German plants, cutting pay by 10% for remaining employees, and downsizing across its facilities in Germany. General Works Council Chairwoman Daniela Cavallo warns that this plan could mark the beginning of Volkswagen’s withdrawal from its home country. She emphasized that no German plant is safe from cuts, underscoring the challenging times for one of the world’s biggest carmakers.

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Volkswagen also plans to freeze wages for two years starting in 2025 and remove additional bonuses, including a €167 monthly bargaining premium. Union leaders, including Cavallo, are calling for clearer communication from Volkswagen’s Board, arguing that employees deserve to understand the company’s long-term goals. Cavallo has also asked Germany’s political leaders to support a sustainable shift to electric vehicles while helping protect Volkswagen’s role in the country’s industrial sector. In response, the government has said that any changes should not harm workers, especially given that past management decisions have contributed to the current situation.

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