(Finance) – Volkswagen declared its intention to close at least three of its factories in Germany, as announced by the company’s works council and reported by newspapers such as Bild and Die Welt. During an information meeting held in Wolfsburg, the president of the Group’s works council, Daniela Cavalloannounced that none of the VW plants can be considered safeas a downsizing of all operational sites is expected.
“The Board of Management wants to close at least three VW plants in Germany,” Cavallo said, expressly concern for jobs and revealing that the Osnabrueck plant, which recently lost an important order with Porsche is among the most at risk.
The decision raised a wave of criticism, including the union IG Metall who described Volkswagen’s plans as a “stab in the heart” for the employees and threatened consequences. Thorsten Grögerdistrict manager of IG Metall, said the decision “is in no way acceptable and represents a break with everything we have experienced in the company over the last decades.”
With approx 120,000 employees in Germany, of which half only in Wolfsburg, Volkswagen operates ten plants across the country. Of these, six are located in Lower Saxony, three in Saxony and one in Hesse. The recent cancellation of the job security program, which had been in place for more than 30 years, has further increased tensions. The employment future of thousands of Volkswagen employees in Germany appears uncertain, and there are prospects ahead union battles to try to avoid layoffs.