Volkswagen has announced the closure of at least three plants, the works council of the German automaker has reported, according to multiple sources including Bild and die Welt. During an information meeting for employees in Wolfsburg, the chairwoman of the Group’s works council, Daniela Cavallo, said that “the Board of Management intends to close at least three VW plants in Germany.” She also specified that none of the other plants are safe and that all will see a reduction in operations. The council is concerned that tens of thousands of jobs could be cut. The Group has just communicated these plans to employees, with a particular focus on the Osnabrueck plant, which recently lost a major order from Porsche. Volkswagen currently employs around 120,000 people in Germany, with nearly half of them in Wolfsburg. In total, the brand operates ten plants in the country: six in Lower Saxony, three in Saxony and one in Hesse. In September, VW had already canceled a work safety program that had been in place for more than 30 years.

The IG Metall union has expressed strong opposition to plans to close Volkswagen plants in Germany, calling them “unacceptable.” The union calls such decisions a “deep stab in the heart” of workers. Thorsten Gröger, district manager of IG Metall, said the board’s plans could not be tolerated and were a break with the corporate culture that had been established over the years. The works council says the intention is to close at least three sites and significantly reduce staff numbers.

Gröger stressed: “This is a serious insult to the hard-working workforce of VW!” He added that Volkswagen and its board are expected to present concrete strategies for the future during the negotiations instead of simply proposing job cuts without substance. A new meeting between VW and the union will take place in Wolfsburg on Wednesday to discuss collective bargaining. Gröger warned that if Volkswagen confirms its negative intentions during this meeting, there will be consequences from the union.

Cavallo also said that VW is demanding a general reduction of ten percent in the company’s pay scale and no pay increases in the next two years. German Chancellor Olaf Scholz’s spokesman, Wolfgang Buechner, commented on the situation, saying: “It is well known that VW is going through a difficult period. However, there is no official announcement at the moment and we must await further clarification from the company.” Buechner also recalled the chancellor’s previous statements that management mistakes should not be passed on to workers and the importance of preserving jobs.

The current situation highlights the significant challenges faced by Volkswagen as it prepares to address possible internal restructuring within the company and external pressures related to the increasingly competitive and evolving global automotive market towards sustainable and innovative forms.