- The company’s boss has previously said Germany is losing competitiveness with overseas rivals.
- VW’s works council chief says she will mount “fierce resistance” to any proposed closures.
- The IG Metall union has criticized for VW for not investing enough in hybrids.
Volkswagen is pondering the possibility of closing two factories in Germany in an effort to save money in the conglomerate’s home market. But the mere suggestion plants could shut has frustrated the powerful labor union that represents many of VW’s workers.
The company is believed to consider one of its vehicle plants and one component factory to now be obsolete and has informed its work council of plans to shutter both of them as it looks to find cost savings worth billions of euros.
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VW chief financial officer Arno Antlitz, VW brand chief Thomas Schaefer, and VW works council chief and IG Metall union member, Daniela Cavallo, are expected to discuss the plants at a works council meeting this week. Group chief executive Oliver Blume may also get involved. According to Cavallo, the meeting will be “very uncomfortable” for VW management and said the works council will mount “fierce resistance” to any proposed closures.
“With us, there will be no site closures,” Cavallo told The Guardian. “Instead of making one-sided savings at the expense of the workforce, we now need a strategic boost for the actual weaknesses: product, complexity, processes, synergies. That is the plan we need.”
Cavallo believes VW’s board should aim to reduce complexity and take better advantage of synergies across the group. She also criticized the company for not investing enough in hybrids and being too slow to launch affordable battery-electric vehicles.
VW boss Oliver Blume has previously issued a warning about the falling competitiveness of the European car industry, and singled out Germany.
“The European automotive industry is in a very demanding and serious situation,” he said. “The economic environment became even tougher, and new competitors are entering the European market. In addition, Germany in particular as a manufacturing location is falling further behind in terms of competitiveness. In this environment, we as a company must now act decisively.”
Board member Thomas Schaefer has added to this, saying “the situation is extremely tense and cannot be overcome by simple cost-cutting measures.”
