Volkswagen CEO sounds alarm: plant closures looming
Threatening factory closures and protests
Last week, Volkswagen announced that it might close plants in Germany. The reason? Overcapacity and falling demand for cars in Europe.
It would be a historic move for the company, which in its long existence has never closed factories in its own country.
The plans are causing great discontent among employees, who fear for their jobs.
Some 300,000 people work for the Volkswagen Group in Germany, 120,000 of them specifically for the Volkswagen brand.
Fierce resistance
On Wednesday, Volkswagen held a meeting at its headquarters in Wolfsburg to update employees on its austerity plans.
Hundreds of employees gathered to protest the impending measures.
Works Council President Daniela Cavallo announced that there will be “fierce resistance” to the cuts.
“The pie is getting smaller”
Blume points to the continuing effects of the corona crisis on European car sales.
Although the pandemic has been behind us for some time, he says the market has still not recovered.
In addition, Volkswagen is facing increasing competition from Asia.
“The pie is getting smaller and we have more guests at the table,” said Blume, referring to increasing competition and decreasing market demand.
True to the German home market
Despite the tough times and the measures announced, Blume stressed that Volkswagen remains loyal to the German home market.
“Volkswagen has been an important employer in Germany for generations and should remain so,” Blume said.
“We have employees whose grandfathers also worked at Volkswagen. I want their grandchildren to be able to do the same.”
Osnabrück and Dresden
Although no concrete details are yet known about which plants may close and how many jobs are at risk, speculation is already rife.
Plants in Osnabrück and Dresden are said to be contenders for closure.
In addition, other brands within the Volkswagen Group, such as Audi, Cupra, Skoda and SEAT, also do not seem to be spared reorganizations.