2024-09-17 10:33:20
OR Volkswagen could advance this year the decisions to close two or three of its factories in Germanypaving the way for more than 15,000 job cuts, analysts at US investment bank Jefferies estimate, according to Bloomberg.
“VW could close production facilities without supervisory board approval, which could cost the company up to 4 billion euros in the fourth quarter from planned job cuts,” Jefferies said, citing comments from VW executives. .
The supervisory board had previously blocked restructuring efforts by its management automotive industry. Half of the seats on the supervisory board are held by employee representatives.
Volkswagen has decided to close production plants in Germany for the first time, the company announced on September 2.
VW has now terminated the collective agreements, which, among other things, regulate job security that have been in place for three decades. The first round of negotiations is scheduled for September 25.
“Unions should feel pressure to reach new deals, while VW will be able to move forward with layoffs,” Jefferies analysts said, citing comments from VW during a North American trade show. “There is a risk of operational disruption, but unions can only strike over wages, not plant closures or layoffs, if the latter are not contractually covered.”
Germany’s biggest automaker is facing major problems due to high costs and competition from Tesla and Chinese automakers, led by BYD.
VW’s chief financial officer Arno Adlitz pointed out that around two million fewer vehicles are now sold annually on the European market car compared to before the pandemic, with Volkswagen accounting for a quarter of the decline.