VW Faces Strikes over Plant Closures
Workers at Volkswagen threatened strikes on Wednesday in protest against management’s plans to close factories in Germany. The move comes amid declining profits and concerns over the company’s competitiveness.
Q3 Results and Union Demands
Volkswagen’s third-quarter results revealed a 42% drop in profit, prompting management to consider significant cost reductions and efficiency gains. Unions, however, are demanding a 7% pay rise and protection for German plant jobs.
Employee Anxiety and Accusations
Ahead of labor talks, employees expressed their disappointment and fear over potential job losses. Union representatives accused management of breaking consensus on decision-making and jeopardizing employee trust.
Management’s Concerns and Comeback Plan
Management acknowledged the need for cost-cutting, citing high costs for workers and energy. Finance chief Arno Antlitz outlined a comeback plan for China, including software improvements and driving assistance, expecting to regain market share in 2026 or 2027.
Industry Challenges and Government Response
VW’s challenges reflect the shrinking European car market and the growing competition from cheaper models from Tesla and Chinese automakers. German automakers fear the impact of EU tariffs on Chinese electric vehicles. The German government is pushing for a solution to keep VW’s plants open, but state aid is yet to be decided.
Market Share Losses in China
Volkswagen’s deliveries in China, the world’s largest car market, fell by 15% in the third quarter, contributing to the overall decline in global sales. The company faces increased competition from local manufacturers and a slowdown in the Chinese economy.
Stock Performance and Union Threat
Year-to-date, Volkswagen’s stock has lost about a fifth. Volkswagen works council head Daniela Cavallo threatened to break off talks if management does not reconsider the plant closures. Unions cannot hold wider strikes until December, but labor leaders have pledged to do everything possible to protect jobs.
