Volkswagen says low European car demand and high labor costs are some of the reasons for its restructuringImage: Hauke-Christian Dittrich/dpa/picture alliance
Volkswagen Passenger Cars CEO Thomas Schäfer told the German Welt am Sonntag newspaper that the car giant will push forward with its factory closure plans despite criticism from unions.
“We need to reduce our capacities and adjust to new realities,” Schäfer said.
In October, the company’s works council said the auto firm would close three factories, resulting in thousands of job cuts.
When asked by Welt am Sonntag whether the company could forgo one of the closures, Schäfer replied: “We do not currently see this.”
Schäfer has been the CEO of Volkswagen Passenger Cars since July 2022
The Volkswagen executive also stood by plans to lay off workers, saying it would “not be enough” to downsize the workforce using early retirements and severance offers.
“That would simply take too long,” Schäfer said. He believes the downsizing plans would take three to four years.
“There is no point in dragging out a restructuring until 2035. The competition would have left us behind by then,” Schäfer said.
The Volkswagen executive said the company is facing higher labor costs in comparison with competitors. He also agreed that management should take salary cuts, one of the demands of the trade union IG Metall during negotiations.
Volkswagen executive Thomas Schäfer said the company needs to adjust to “new realities” as it intends to shut down German factories and cut jobs. The IG Metall trade union is set to strike next month over the plan.
Volkswagen says low European car demand and high labor costs are some of the reasons for its restructuringImage: Hauke-Christian Dittrich/dpa/picture alliance
Volkswagen Passenger Cars CEO Thomas Schäfer told the German Welt am Sonntag newspaper that the car giant will push forward with its factory closure plans despite criticism from unions.
“We need to reduce our capacities and adjust to new realities,” Schäfer said.
In October, the company’s works council said the auto firm would close three factories, resulting in thousands of job cuts.
When asked by Welt am Sonntag whether the company could forgo one of the closures, Schäfer replied: “We do not currently see this.”
Schäfer has been the CEO of Volkswagen Passenger Cars since July 2022
The Volkswagen executive also stood by plans to lay off workers, saying it would “not be enough” to downsize the workforce using early retirements and severance offers.
“That would simply take too long,” Schäfer said. He believes the downsizing plans would take three to four years.
“There is no point in dragging out a restructuring until 2035. The competition would have left us behind by then,” Schäfer said.
The Volkswagen executive said the company is facing higher labor costs in comparison with competitors. He also agreed that management should take salary cuts, one of the demands of the trade union IG Metall during negotiations.
