Volkswagen Labour Leaders Reaffirm Stance Against Plant Closures in Germany
Labour Representatives and Volkswagen's Strategy for German Plants
By Christina Amann and Rachel More
Labour Leaders' Commitment to German Production Sites
BERLIN, May 15 (Reuters) - Top labour representatives at Volkswagen said they would not allow plants to be closed, while remaining open to proposals to secure the future of under-used production sites in Germany, according to a joint statement to Reuters on Friday.
Exploring Alternatives to Plant Closures
Volkswagen is looking to cut excess capacity in its German production network without resorting to factory closures - something ruled out under a 2024 restructuring deal with unions - with defence partnerships and Chinese collaboration floated as possible options.
Union Leaders Uphold 2024 Commitments
The head of the powerful works council, Daniela Cavallo, IG Metall union head Christiane Benner and regional union leader Thorsten Groeger said that the 2024 deal and its commitment to German plants must not be called into question.
"The fundamental situation has not changed - nor have the red lines set by the employee side," they said. "With us as the general works council and IG Metall, there will be no plant closures."
Challenges Facing Volkswagen
Volkswagen's margins have been eroded by weak demand and a costly transition to electric vehicles. Pressure has only grown in recent years due to fierce competition from China and tariff hikes, while conflict in the Middle East is driving up costs and uncertainty.
Management's Response to Financial Pressures
After reporting another profit slump at the start of the year, CEO Oliver Blume doubled down on his quest for further savings.
He floated the possibility of a plant-sharing deal with Chinese partners to address overcapacity - though no talks have been confirmed - while progressing negotiations over a possible sale of Volkswagen's Osnabrueck plant to a defence company.
At a conference hosted by the FT in London this week, Volkswagen brand chief Thomas Schaefer said the group was working to adjust excess volumes and referred to plant closures as "the second-best option".
Labour Officials' Position on Future Proposals
The labour officials pledged an open mind to proposals both within the group or with external partners, provided they uphold commitments made by management in 2024.
Cavallo, Benner and Groeger said their principles of quality work, career prospects and job security still stand, adding that they would fight anything that runs counter to those principles with all their might, both now and in the future.
(Reporting by Christina Amann and Rachel More; Editing by Kirsten Donovan)
