Volkswagen aims to cancel a no-layoffs pledge and won't rule out closing plants in Germany
Volkswagen says it's not getting the cost reductions that it needs - and won't rule out plant closings in its home country Germany
By DAVID McHUGH
Published - Sep 02, 2024, 04:45 PM ET
Last Updated - Sep 02, 2024, 04:45 PM EDT
FRANKFURT, Germany (AP) — Germany's Volkswagen says auto industry headwinds mean it can't rule out plant closings in its home country - and must drop a longstanding job protection pledge in force since 1994 that would have barred layoffs through 2029.
“The European automotive industry is in a very demanding and serious situation," Oliver Blume, Volkswagen Group CEO, said in a statement Monday.
He cited new competitors entering the European markets, Germany's deteriorating position as a manufacturing location and the need to “act decisively.”
Thomas Schaefer, the CEO of the Volkswagen Passenger Cars division, said efforts to reduce costs were “yielding results” but that the “headwinds have become significantly stronger.”
