Volkswagen ​Considers Closing German Factories Amid Cost-Cutting Efforts

German automaker Volkswagen is exploring the possibility of closing factories in its home country, potentially reneging on its promise to maintain staff ‍levels until ​2030, according to a report ⁢by the Financial Times.

The company’s CEO, Thomas Schaefer, has acknowledged that its cost-cutting program, launched last year, has fallen short of its target by several billion euros, resulting in significant losses for the company, as stated by board chairman ‍Daniela Cavallo in a message to employees.

The report quotes the company as saying‍ that the board is now⁢ reassessing its German plants, internal collective wage agreements, and job retention program, which is set to expire at the end of 2029.

In Germany, works councils play a crucial role⁣ in protecting employees’ interests and participating in the decision-making process of large companies,​ including Volkswagen.