Published by Global Banking & Finance Review®
Posted on December 7, 2024
1 min readLast updated: January 27, 2026
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Volkswagen's potential plant closures face criticism from German Chancellor Scholz, who urges the carmaker to avoid shutdowns amid labor disputes.
FRANKFURT (Reuters) - Factory shutdowns would be a wrong move by Volkswagen, German Chancellor Olaf Scholz said, adding that Europe's largest carmaker had a responsibility to its employees.
Volkswagen is in a bitter dispute with staff over pay cuts and possible plant closures aimed at countering high costs in Germany and massively cheaper Asian rivals entering Europe.
Both sides go into a fourth round of negotiations on Monday.
"Specific decisions will be negotiated between the owners and labour representatives. My opinion is clear: closing locations would not be the right way to go," Scholz told the Funke Media Group.
"It would not be right because poor management decisions have contributed to the difficult situation," he added.
The state of Lower Saxony is Volkswagen's second-largest shareholder, and its state premier, like Scholz, has urged the group to avoid site closures.
(Reporting by Christoph Steitz; editing by Giles Elgood)
The main topic is Volkswagen's potential plant closures and the criticism from German Chancellor Olaf Scholz.
Volkswagen is considering closures to counter high costs and competition from cheaper Asian rivals.
Olaf Scholz opposes the closures, urging Volkswagen to take responsibility for its employees.
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