Are sites bleeding dry?

Volkswagen plans to close at least three plants

Volkswagen produced around 4.9 million vehicles at ten locations in 2023. 120,000 people are employed there.

(Bild: Longfin Media - stock.adobe.com)

It has long been rumored, now it is clear: Germany's largest car manufacturer Volkswagen wants to close at least three plants. Tens of thousands of jobs will soon no longer exist and entire departments could be relocated abroad.

"All German VW plants are affected by these plans. None of them are safe!" announced the head of the Works Council, Daniela Cavallo (49), in a speech to employees on Monday.

It is the firm intention to bleed the plant regions dry. And it is the clear intention to send tens of thousands of Volkswagen employees into mass unemployment.

Daniela Cavallo

Bild: AFP/RONNY HARTMANN

"This is the plan of Germany's largest industrial group to start the sell-off in its home country of Germany. It is the firm intention to bleed the regions where the plants are located dry. And it is the clear intention to send tens of thousands of Volkswagen employees into mass unemployment," explained Cavallo. It is about "all types of work. Regardless of whether they involve semi-skilled jobs or qualifications with a university degree," said Cavallo. "So none of us can feel safe here anymore!"

Up to 18 percent less pay
Those employees who are not affected by the job cuts are likely to earn significantly less in future. According to the works council, income cuts of up to 18 percent are planned. In the long term, the management wants to pay ten percent less monthly salary, implement two zero wage rounds in 2025 and 2026 and also cut allowances and bonuses, Cavallo announced.

Works Council chairwoman Cavallo has no soothing words for VW employees.

(Bild: APA/AFP/POOL/Julian Stratenschulte)

"The Board of Management has set everything on fire"
According to the works council, the plant in Osnabrück could be the target of the closures. It had recently lost a follow-up order from Porsche. Cavallo stated: "The fact is that the Executive Board set fire to everything for the workforce here, it set everything on fire - and then left. Such behavior is shabby. It has absolutely nothing to do with appreciation. But there is a system behind it."

German chancellor: Volkswagen must save jobs
The German government has called on VW to save jobs. According to the works council, a government spokesperson said that it was still necessary to wait and see what Volkswagen itself would say. However, the position of Chancellor Olaf Scholz (SPD) is clear - "namely that possible wrong management decisions from the past must not be at the expense of employees".