Volkswagen to close factories, lay off thousands of employees: Reports
PTC Web Desk: Volkswagen is all set to close at least three factories in Germany, lay off tens of thousands of employees, and permanently reduce operations at its remaining facilities as part of a significant restructuring effort, according to the head of the works council, as reported by Reuters.
"The management is fully committed to this plan. This is not mere posturing during collective bargaining," said Daniela Cavallo, Volkswagen's works council chair, addressing hundreds of workers in Wolfsburg. This marks a historic move for Germany's largest industrial group, which will be the first time in its 87-year history that it shuts down production facilities in its home country.
Cavallo informed employees of the impending changes, which may face opposition from unions, as Volkswagen seeks to adapt to increasing competition from China, declining sales in other key markets, and the high costs associated with the transition to electric vehicles.
This announcement comes shortly after the deportation of Volkswagen's chief marketing officer for China, Jochen Sengpiehl, who was detained by the Chinese authorities for drug use. Reports from BILD indicate that Chinese officials confirmed cannabis use during a test conducted in Beijing after Sengpiehl's return from Thailand, leading to over ten days in custody before his deportation.
- With inputs from agencies
