Volkswagen is currently navigating rough seas as the company attempts to not only revive sluggish EV sales but also deal with growing discontent in Europe. It appears that the company has no easy way out of these troubles either with Volkswagen CEO Thomas Schaefer confirming that plant closures and layoffs are unavoidable and that they are morphing into a necessary move for the company to make.
Volkswagen prepares to tighten its belt with layoffs and closures
In a recent interview with the German publication Welt Am Sonntag and delivered a simple message stating “VW needs to reduce capacities “and adapt to the new realities.” Schaefer went on to say that, as of now, the company doesn’t see any way to reach its goals without closing at least one factory.
As far as potential targets for closure are concerned, Volkswagen is eying two facilities: the plant in Osnabruck where the Porsche 718 Cayman and Boxster are built (along with the weird Volkswagen T-Roc Cabriolet,) and the “Transparent Plant” in Dresden which helps provide supplemental production for the ID.3. Layoffs will most likely accompany the plant closures as the company prepares to tighten its belt and potentially make cuts elsewhere in the company.
Plant closures would help create dark history at Volkswagen
If Volkswagen follows through with closing one or both of these plants, it would help create a new and dark chapter in the company’s history. Throughout its 87-year history, the company has never been forced to close a plant in its home market of Germany including during the period of German Reunification when the company navigated the challenge of dealing with old East German factories that were long past their shelf life.
Volkswagen workers are not taking the news sitting down with local union leaders and VW’s Workers Council raising staunch opposition to the proposed layoffs and closures with all of these entities telling Volkswagen to not close any plants whatsoever in Germany. If VW moves through with its plans, the Workers COuncil and the unions are prepared to go on strike in early December which could have the potential of crippling select elements of production for the company.
Carl Malek has been an automotive journalist for over 10 years. First starting out as a freelance photographer before making the transition to writing during college, his work has appeared on numerous automotive forums as well as websites such as Autoshopper.com.
Carl is also a big fan of British vehicles with the bulk of his devotion going to the Morgan Motor Company as well as offerings from Lotus, MG, and Caterham. When he is not writing about automobiles, Carl enjoys spending time with his family and friends in the Metro Detroit area, as well as spending time with his adorable pets.