A dramatic cost-cutting exercise by German auto giant Volkswagen could result in up to three factories being closed in its home country, the head of the manufacturer’s works council has told anxious employees. Last month, Reuters reported that the Volkswagen Group is targeting savings of €10 billion (A$16.3 billion) by 2026.
At the time, the carmaker’s works council said at least one vehicle plant and component factory were considered “obsolete”. Volkswagen finance chief Arno Antlitz later attended a gathering of 25,000 workers at the company’s Wolfsburg headquarters, and said they needed to work with management to cut spending. 100s of new car deals are available through CarExpert right now.
Get the experts on your side and score a great deal. Browse now . However, with talks ramping up between Volkswagen and the works council, the leader of the latter organisation, Daniela Cavello, has now warned staff that an announcement to close at least three factories is nigh.
“Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round,” Ms Cavello said outside Volkswagen’s Wolfsburg factory, Reuters reports. “This is the plan of Germany’s largest industrial group to start the sell-off in its home country of Germany.
” Volkswagen is reportedly due to table its official proposal to the works council on Wednesday (October 30), and it’s not yet clear how much of the carmaker’s 300,000-strong workforce in German.