The auto industry faces a big shake-up as Daniela Cavallo‚ VWs top worker representative shared some hard-to-swallow news: the company wants to close three german factories and cut lots of jobs (tens-of-thousands to be exact)
Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round. This is the plan of Germanyʼs largest industrial group to start the sell-off in its home country of Germany
The car-maker plans a 10% pay-cut while dealing with several issues; weak sales in China and Europe‚ plus its behind in the electric-car race. The works council which has half the votes on VWs board‚ agrees theres problems but dont like the solutions
In a direct message to Oliver Blume‚ VWs boss‚ Cavallo warned about possible strikes if they dont change course within 2 days - saying workers might “do what a workforce has to do when it fears for its existence“. The company (which has 680‚000 workers world-wide) recently dropped its no-layoff promise that was supposed to last till 29
A VW rep didnt say much about specific plans but mentioned: “This is the only way to finance further investments in the future from our own resources“. Meanwhile‚ German govt knows about VWs tough spot and talks with both sides