Germany’s largest union, IG Metall, has warned of strong opposition if Volkswagen attempts to revise a restructuring agreement reached less than two years ago. Union leader Thorsten Groeger said workers across Volkswagen’s sites would resist any move to reopen the deal, as the automaker considers major changes including plant closures, business carve-outs and up to 50,000 additional job cuts.
Volkswagen’s supervisory board is scheduled to meet on Friday to vote on three competing restructuring proposals. The decision could intensify the dispute between management and workers and potentially lead to an extraordinary shareholder meeting. The latest restructuring push comes as Volkswagen faces pressure from tariffs, growing competition from Asian automakers and weakness in the Chinese market.
Volkswagen finance chief Arno Antlitz said the company would do everything possible to protect jobs but warned that there are currently no viable production plans for plants in Hanover, Emden, Neckarsulm and Zwickau. He said maintaining current production levels without reducing excess capacity could leave Volkswagen with a permanent cost disadvantage of around €1.5 billion ($1.74 billion) annually.
Pic courtesy: google/ images are subject to copyright
