Volkswagen CEO Oliver Blume warned of a more than critical situation for the company, stressing that the German automotive industry is facing the biggest storm in its history due to the weak economy and Chinese competition.
The group is preparing to make new decisions to reduce costs, including laying off employees, while Blume is holding meetings with workers' representatives at a number of the company's sites in Germany to explain the savings plans.
Blume confirmed that Volkswagen has not yet made a decision to close any factory, but indicated that the company does not currently see the possibility of the Emden, Hanover, Zwickau and Neckarsulm plants remaining profitable during the 2030s.
Volkswagen also faces a production capacity surplus in Europe estimated at around 500,000 cars per year, with Blume describing factory closures as the last and most costly option.
Instead of closing, the company is looking for alternative industrial solutions, including using some of the factories in other areas, noting advanced negotiations with companies in the defense industry sector regarding the Osnabrück plant.
Volkswagen had previously approved plans to lay off around 50,000 employees, while Blume said that agreements had been reached with 37,000 workers so far, stressing that the success of the plan requires the support of all parties.
In contrast, the IG Metall union opposes management's plans, and union leader Christiane Benner has threatened to resist any attempts to close the factories, arguing that workers have already suffered heavy and painful cuts and are now facing a new blow.
