The white and blue VW logo design depends on the roof covering of the brand name tower on the premises of the VW plant in Wolfsburg.
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German vehicle titan Volkswagen is supporting for a face-off with profession unions soon after it stated it can not dismiss closing manufacturing facilities in its home nation for the very first time in its almost 90-year background.
Volkswagen’s administration is anticipated to outline its strategies prior to regarding 18,000 employees at a city center conference in Wolfsburg on Wednesday early morning, in the middle of supposition that the carmaker might press to shut websites in Osnabrueck in Lower Saxony and Dresden in Saxony.
A representative for Volkswagen was not quickly readily available to comment when called by on Tuesday.
In a relocation that highlights the difficulties dealing with Europe’s leading heritage carmakers, Volkswagen advised on Monday that it would certainly no more have the ability to dismiss plant closures in Germany.
The Wolfsburg- headquartered business likewise stated it really felt obliged to bring an end to its work security arrangement– a task protection program that has actually remained in location because 1994– in order to protect “urgently needed structural adjustments for greater competitiveness in the short term.”
The logo design of German auto manufacturer Volkswagen (VW) is seen on the front of a Volkswagen ID. Buzz Pro electrical van at the International Motor Show (IAA) in Munich, southerly Germany, on September 5, 2023.
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Volkswagen Group CHIEF EXECUTIVE OFFICER Oliver Blume stated in a composed declaration on Monday that the carmaker would certainly require to “act decisively” in order to future-proof the business.
“The European automotive industry is in a very demanding and serious situation,” Blume stated.
“The economic environment became even tougher, and new competitors are entering the European market. In addition, Germany in particular as a manufacturing location is falling further behind in terms of competitiveness,” he included.
Volkswagen stated that all essential steps would certainly be reviewed with the General Works Council– a team of chosen employee that stand for the passions of a firm’s labor force– and with leading German commercial union IGMetall Both teams, which hold considerable impact at the business, have actually been dramatically essential of the propositions.
Daniela Cavallo of Volkswagen’s General Works Council stated that the intrigue would certainly “fight bitterly” versus the possible plant closure steps, while a representative for IG Metall defined the strategy as one that “shakes the foundations of Volkswagen and poses a massive threat to jobs and locations.”
‘ A main column for development’
Shares of Volkswagen dipped 0.5% at around 12:50 p.m. London time on Tuesday, paring gains from the previous session. Volkswagen’s supply rate has actually dropped by greater than 33% over the previous 5 years.
The slump comes in the middle of a tough financial setting for the carmaker and an increase of brand-new opponents in Europe, as Volkswagen tries to endure the transition to electric cars.
“The situation is extremely tense and cannot be resolved through simple cost-cutting measures,” VW brand CEO Thomas Schäfer said on Monday.
“This is why we want to initiate discussions with employee representatives as soon as possible to explore the possibilities for sustainably restructuring the brand,” he added.
Shares of Volkswagen over the past five years.
Volkswagen’s plans to consider unprecedented plant closures in Germany comes at a politically fraught time for Europe’s largest economy. Led by Chancellor Olaf Scholz, the ruling three-way coalition in Berlin was dealt a heavy blow in regional votes over the weekend.
“The German automotive industry stands for globally successful products and innovations. It is a central pillar for growth and prosperity in Germany,” a German government spokesperson told by email, without commenting specifically on Volkswagen’s planned measures.
“At the same time, it is currently in a challenging phase of transformation towards electromobility. This also requires the adaptation of traditional structures and measures for greater competitiveness,” the spokesperson added, according to a Google translation.
“A close social partnership is a hallmark of the German automotive industry. The Federal Government therefore appeals to the social partners involved to continue to fulfil this responsibility in the future.”
Thomas Besson, head of automotive research at Kepler Cheuvreux, said the problems at Volkswagen reflect an “industry-wide story.”
“We are seeing a major fragmentation story of the global automotive landscape,” Besson told ‘s “Street Signs Europe” on Tuesday.
“The situation … is also specific to Volkswagen, in the sense that they have put in place a number of guarantees for workers,” he added.
— ‘s Annette Weisbach contributed to this report.
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