Volkswagen Confirms Factory Closures and Job Cuts in Restructuring Plan

VW brand chief Thomas Schäfer says closures and layoffs are necessary to address overcapacity and high costs, with unions planning strikes in response.

Volkswagen's brand chief Thomas Schäfer has announced that factory closures in Germany are unavoidable as part of the company's restructuring efforts.
The automaker aims to cut €4 billion in costs, citing overcapacity and labor costs in Germany being double those of other regions.
Schäfer confirmed that job cuts will go beyond early retirement and voluntary severance, stating these measures alone are insufficient to meet targets within the 3-4 year timeline.
Union IG Metall has called for warning strikes starting in early December, following unsuccessful negotiations over pay and capacity reductions.
Volkswagen's management has already implemented salary reductions, including a 5% cut for executives, and Schäfer expressed support for further cuts as part of ongoing labor talks.