The German automobile giant is closing two of its factories
Eviralnews,, citing Rashatoudi, the German automobile giant, Volkswagen, announced that it may close at least two factories in the country and end job security plans as part of its cost-cutting plan.
This car manufacturer was the world's largest car manufacturer in terms of sales volume until 2017. The company owns car, truck and motorcycle brands such as Audi, Bentley, Lamborghini, Seat, Skoda, Porsche, Scania and Ducati.
Volkswagen Group CEO Oliver Blum cited “difficult economic conditions” and the “weak competitiveness of the German economy” as factors behind the decision.
Thomas Schaefer, head of the Volkswagen brand, said in a statement on Monday: “The situation is very serious and cannot be overcome by simple cost-cutting measures.”
The company must also end its job security program as part of efforts to save 10 billion euros ($11.07 billion) by 2026, according to Volkswagen management.
According to the report, all these measures must be coordinated with the Labor Council trade union, which has already expressed its “strong opposition” to the plan.
The works council has claimed that Volkswagen has just declared a “major car plant” and a parts factory in Germany “out of order”.
The IG Metall trade union called the company's announcement irresponsible and argued that the plan shook the “foundation” of Germany's largest industrial employer.
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