The top union representatives of Volkswagen have reiterated that the closure of plants will not be allowed. The position, while keeping the door open to proposals capable of safeguarding the future of production sites in Germany, is clear. The 2024 restructuring agreement with the unions and the “red lines” defined by the workers must not be questioned. In particular, Daniela Cavallo, chairwoman of the works council, Christiane Benner, head of IG Metall, and Thorsten Groeger, regional union leader, stated that with them and IG Metall, there will be no closures.
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Volkswagen, the unions take a stand
According to Reuters, Volkswagen is meanwhile trying to manage a production capacity considered excessive in the German network. And it wants to do so without resorting to this measure, explicitly excluded from the 2024 agreement. Among the options on the table are partnerships in the defense sector and collaborations with Chinese partners, as tools to absorb volumes and make underutilized plants more efficient. A strategy that fits into an already complicated context. The company’s profit margins have been eroded by weak demand and the costs of the transition to electric vehicles, accentuated by Chinese competition and increased tariffs. The instability related to the conflict in the Middle East continues to drive up expenses and uncertainties.
No to plant closures
After a further drop in profits recorded at the beginning of the year, CEO Oliver Blume has intensified efforts to find additional savings. Among the indications that emerged is the suggested possibility of a “plant sharing” agreement with Chinese partners to address overcapacity. There is also talk of progress in negotiations for a possible sale of the Osnabrück site to a company in the defense sector. In parallel, Thomas Schaefer, head of the Volkswagen brand, explained that the group is working to realign excess volumes and described plant closures as “the second-best option.” The unions, for their part, have said they are willing to consider internal solutions or offers from external partners, provided they respect the 2024 commitments and guarantee job quality, career prospects, and job security.
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