Volkswagen labor union vows to fight factory closures

Investing.com -- Volkswagen AG faces strong opposition from labor leaders as the company considers large-scale job cuts and factory closures in Germany. The confrontation came to a head Thursday during a supervisory board meeting.

"This is a clear signal to the management board: Not with us," IG Metall union chairwoman Christiane Benner said Thursday in a statement. "The employees have made their contribution."

The automaker is working to reduce costs and improve efficiency as profits decline in China, its largest market. Chief Executive Officer Oliver Blume and other top executives have called for measures to boost competitiveness, particularly at German operations where energy and labor costs are high.

"Management and supervisory board share the concerns about the future of the VW Group," VW said in a statement. "This is why management has developed an extensive future plan with the goal of making VW and all its brands and units faster, more robust and more competitive."

IG Metall, Germany's largest labor union, organized protests Thursday at more than a dozen sites across the country, including in Stuttgart and Ingolstadt, where Porsche and Audi are based. These brands have also faced pressure from weak Chinese demand and trade tariffs.

Der Spiegel reported that an internal Volkswagen document outlined plans to close four factories between 2031 and 2034, including Audi's Neckarsulm plant. Manager Magazin reported last month that VW could increase planned job cuts to 100,000 and close four plants in Germany.

Labor leaders criticized company management for poor decisions during the industry's transition to software-focused and electric vehicles.

Factory closures require approval from the supervisory board, where labor representatives hold half the seats. Two additional seats are held by Lower Saxony, which typically supports labor. The German state holds a 20% stake and certain veto rights in the company.

Lower Saxony is home to key VW sites, including the Wolfsburg headquarters, where the company employs around 70,000 people. Other board seats are held by the Porsche and Piech family and the Qatar Investment Authority.

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