Volkswagen crisis

A fateful day for Volkswagen – 100,000 jobs at risk

Thursday is a crucial day for Volkswagen as the management team of the struggling German carmaker meets at its headquarters in Wolfsburg, Reuters reports.

At the meeting, the company's CEO Oliver Blume must convince powerful union representatives that major cuts are the right way forward.

Sources say Blume is considering closing four German factories, which could affect 100,000 employees.

Volkswagen, which is battling Chinese competition and US tariffs, is suffering from high costs and overcapacity at home.

The meeting begins at noon on Thursday and large protests are expected at Volkswagen factories in the country. 

VW wants to scrap every other model – postpones decision on cuts

Volkswagen plans to scrap half of its models by 2030, management said, according to German media.

In its “future plan”, the company states that VW will become more efficient and competitive.

“Our goal is clear: By 2030, we will make Volkswagen the most attractive car company in the world,” says CEO Oliver Blume in a press release.

The company management has presented a package of measures with twelve initiatives to achieve the goals by 2030. Among other things, production capacity will be adjusted so that around nine million vehicles are manufactured per year.

After the board meeting in Wolfsburg, no decisions were made about factory closures or staff reductions, NDR and Wolfsburger Allgemeine report. Cuts of 120,000 jobs are being discussed, writes Bild, referring to an internal company document. According to German media, four factories could be closed.

Union appeals to VW: “The employees have done their part”

IG Metall is appealing to Volkswagen not to proceed with the gigantic savings package that is said to be on the table ahead of this afternoon's board meeting in Wolfsburg.

– This is a clear signal to the company management: not as long as we have something to say about it. The employees have already done their part, says union chairwoman Christiane Benner according to Bloomberg.

According to Der Spiegel, the plan is to fire up to 90,000 employees and shut down production in four German factories.