Volkswagen unions reject plant closures amid pressure on German factories

Labour leaders at Volkswagen have reaffirmed their opposition to factory closures in Germany, insisting that agreements reached with unions in 2024 must be respected despite growing pressure on the company to reduce excess production capacity.

The statement came as Volkswagen continues efforts to cut costs and address weak demand, rising competition from China and expensive investments in electric vehicles, while exploring options such as partnerships with Chinese firms and possible defence industry cooperation, News.Az reports, citing Reuters.

Top labour representatives, including works council head Daniela Cavallo and IG Metall union leaders, said there would be “no plant closures” under their watch and stressed that employee protections and commitments to German production sites remain unchanged.

Volkswagen executives have recently discussed alternatives to closures, including sharing facilities with external partners and negotiating the possible sale of the Osnabrueck plant, as the company seeks to manage overcapacity and declining profits amid broader global economic uncertainty.

News.Az 

By Leyla Şirinova