Here is the electric future: Volkswagen closes three factories

Nobody is safe anymore. A cry of alarm that well sums up the situation at home Volkswagenan automobile giant hit by German crisis and from electric car flopa business in which the company has invested …

Here is the electric future: Volkswagen closes three factories

Nobody is safe anymore. A cry of alarm that well sums up the situation at home Volkswagenan automobile giant hit by German crisis and from electric car flopa business in which the company has invested billions of euros. After the rumors that have circulated in recent weeks – from the hypothesis of closure in Belgium to the alleged job cuts – the company’s top management have thrown away the mask: as reported by the Financial Times, we are moving towards the closure of three factories. News confirmed by Bild and Die Welt.

Today, unions organized meetings in all German factories to update employees on the status of the negotiations. Volkswagen is the point of reference for cars in Germany with 300 thousand employees and a crystal-clear history: just think that in its 87 years of history it has never closed factories in the country so far. Works council president Daniela Cavallo highlighted that Volkswagen has planned cuts also in other sites: “All German VW plants are affected by these plans. No one is safe.”

According to what has been reconstructed, Volkswagen is planning a cost cuts of 4 billion euros. In a nutshell: a 10 percent cut in salaries and a wage freeze are expected for 2025 and 2026. Furthermore, the management would also like to reduce the bonuses reserved for the highest salary range and the bonuses linked to seniority.

The government German is following the developments. A spokesperson for the executive highlighted: “We still have to wait and see what Volkswagen itself will report on this matter.” The Chancellor’s position on this point Olaf Scholz is clear, the spokesperson further underlined, explaining that “that is to say that any wrong decisions by management in the past must not be to the detriment of employees”. It’s about maintaining and guaranteeing jobs, the spokesperson further stated.

In a note released this morning, the head of Volkswagen Thomas Schafer pointed out that some of the German plants cost twice as much as those of rival automakers. “We currently earn too little from our cars,” he highlighted: “At the same time, our costs for energy, materials and personnel have risen. This calculation cannot work in the long term.” It is inevitable to think about the flop of electric cars, a market that is at a standstill despite the great expectations of manufacturers, including VW. Many ambitious plans have been scrapped, but the blow to sales continues to be felt.

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