Volkswagen to Close 3 Factories In Germany

Volkswagen's management plans to close at least three plants, cut tens of thousands of jobs, and reduce pay by 10% for remaining staff, according to a statement from staff representatives, Eleanor Butler reported for Euronews.

The manufacturer is also seeking to downsize all remaining plants. I Photo: Volkswagen

The manufacturer is also seeking to downsize all remaining plants, according to the document. This will, it claims, result in the outsourcing of many tasks and entire divisions to external service providers.

"This is the plan of Germany's largest industrial group to start the sell-off in its home country," said General Works Council Chairwoman Daniela Cavallo, speaking at VW’s main plant in Wolfsburg.

"All German VW plants are affected by this. None of them is safe!"

The announcement comes after Volkswagen recently issued its second profit warning in less than three months. Weak demand in Chinese and European markets, along with a botched electric vehicle transition, have hit the manufacturer's earnings.

In addition to the 10% pay cut, there will be a two-year wage freeze in 2025 and 2026. The board also plans to abolish a monthly €167 collective bargaining premium and other bonuses.