EBN- Volkswagen has confirmed its commitment to plans to close its German factories despite a union vote in favour of a strike in early December.
We need to reduce our capacity and adapt to the new realities,” said Volkswagen brand CEO Thomas Schäfer.
Cost-cutting moves included component sites and car factories, and when asked if Volkswagen could abandon factory closures, Schaefer said: “We don’t see that at the moment.”
Schaefer did not rule out layoffs, saying that reducing the workforce through retirement and severance offers “would not be enough” and would take a long time, and that the reorganization could take three to four years.
He added that if the two sides reach an agreement, “for me it includes the contribution of the board of directors and management” and that since January the fixed salary of board members has been reduced by 5%.
The IG Metall union’s negotiating committee recently approved the strike after another round of wage negotiations in Germany failed, and the strikes are scheduled to begin in early December.
The company is considering closing its factories in Germany for the first time in its 87-year history, as it moves to deepen cost cuts amid growing competition from electric car makers in China.
