Volkswagen Considers Plant Closures and Layoffs Amid Cost-Cutting Measures

Volkswagen is contemplating plant closures and layoffs as part of its cost-cutting strategy, including ending the employment guarantee that prevented operational layoffs until 2029. The company attributes the necessity for cost reductions to competitive pressures, weak new business, and the need to enhance results by 10 billion euros.

The core brand, VW, faces high costs and low profitability, prompting the consideration of drastic measures. The workforce opposition, led by the employee council with a majority in the supervisory board, signals potential challenges ahead.

Subsidiaries like Wolfsburg AG and Autovision face repercussions, with Wolfsburg AG securing liquidity until 2024 amidst a challenging market environment.