Official statements from Volkswagen or reports from major financial news outlets

Volkswagen to Close Three German Factories, Implement 10% Wage Cut in €4 Billion Cost-Saving Plan

Oct 28, 2024, 10:43 AM

Volkswagen is considering significant cost-cutting measures to save around €4 billion, including closing at least three factories in Germany, laying off tens of thousands of employees, and implementing a 10% wage cut along with a two-year wage freeze. The automaker is also planning to cap bonuses for top executives and may outsource or shift abroad entire departments. These actions aim to reduce costs and make the company more competitive amid a stagnating European car market. The works council, led by Daniela Cavallo, has voiced strong opposition to these plans, citing risks of forced layoffs and shrinking of remaining plants in Germany. Workers are joining rallies to protest the proposed closures and job cuts. The German government is aware of the situation and awaiting further comments from the company. Volkswagen stated that the restructuring measures are necessary to finance future investments from its own resources.