Finance
Volkswagen plant closures 'not the right way', Germany's Scholz says
Published by Global Banking & Finance Review®
Posted on December 7, 2024
1 min readLast updated: January 27, 2026
Quick Summary
Volkswagen's potential plant closures face criticism from German Chancellor Scholz, who urges the carmaker to avoid shutdowns amid labor disputes.
Volkswagen's Plant Closure Plans Criticized by Scholz
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)
Key Takeaways
- •Volkswagen faces disputes over pay cuts and plant closures.
- •German Chancellor Scholz opposes factory shutdowns.
- •Negotiations between Volkswagen and labor continue.
- •Lower Saxony, a major shareholder, urges against closures.
- •High costs and competition from Asia are key issues.
Frequently Asked Questions about Volkswagen plant closures 'not the right way', Germany's Scholz says
1What is the main topic?
The main topic is Volkswagen's potential plant closures and the criticism from German Chancellor Olaf Scholz.
2Why is Volkswagen considering plant closures?
Volkswagen is considering closures to counter high costs and competition from cheaper Asian rivals.
3What is Olaf Scholz's stance on the closures?
Olaf Scholz opposes the closures, urging Volkswagen to take responsibility for its employees.
