Volkswagen's works council says current job cuts insufficient

Investing.com -- Volkswagen management informed employee representatives that previously agreed job reductions are not enough, according to a works council note reported by Reuters on Monday.

The note stated that management has not yet provided specific numbers for additional job cuts to employee representatives.

Europe's largest car maker is weighing the closure of four German factories and expanding job reductions to as many as 100,000 positions, two people familiar with the matter said on Friday. The move would represent the biggest overhaul in the automotive sector.

The German government said Monday it wants to prevent Volkswagen from closing domestic plants, though it acknowledged the final decision belongs to the company.

"Our aim is to prevent the closure of sites in Germany," a government spokesperson said.

The spokesperson said the government needs to create proper framework conditions to keep the plants running, including necessary competitive mechanisms.

"Incentives must be provided to ensure that these sites remain profitable," the spokesperson said.

The spokesperson added that companies make such decisions based on commercial grounds.

"In principle, however, it is always up to the companies to make these decisions on commercial grounds," the spokesperson said.

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