5 November 2024
Carmaker Volkswagen is planning to shut at least three factories in Germany and cut pay by 10%, according to its union leader, reported by Reuters. By Leatherbiz.
Europe’s biggest carmaker has been negotiating with unions over plans to cut costs.
Daniela Cavallo, Volkswagen’s works council head, said: “This is the plan of Germany’s largest industrial group to start the sell-off in its home country of Germany.”
The group said it faces pressure from high energy and labour costs, Asian competition, weakening demand in Europe and China and a slower-than-expected electric transition.
In the first nine months of this year, Volkswagen delivered 6.52 million vehicles, down 2.8% on the previous year. Growth in North America (+7%) and South America (+15%) was offset by declines in Western Europe (-1%) and China (-10%).
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