Volkswagen (VW) is mulling the closure of various production plants in Germany, Kallanish learns.
The German carmaker is under pressure to reduce its costs and is therefore testing closures of four plants – Hannover, Emden, Zwickau und Neckarsulm, according to media reports. This would mean that up to 10,000 jobs are under threat.
Volkswagen, alongside its various brands, is the largest German carmaker, and likely the largest single steel consumer of the country.
VW has so far not specified the number of jobs in Germany or confirmed the plant closures, but recently confirmed the agreements for wider job cuts of 50,000 roles across the group by 2030.
The state government of Lower Saxony holds 20% of the voting rights in the group, and together with the representatives of the work force holds a majority in the supervisory board. The state also holds a veto option in important decisions.
The participation of the state is similar in structure at steelmaker Salzgitter AG. Both the steelmaker and the carmaker have their main plants in Lower Saxony (Wolfsburg, Salzgitter), and their historical development has been closely tied to one another.
A statement by union IG Metall cites Lower Saxony’s Prime Minister Olaf Lies as saying: “We have taken notice of the plans as they were reported in the media. Concrete measures will have to be discussed and decided by the supervisory board.
He adds that: “The state Lower Saxony will not approve a development that banks on plant closures as a supposedly easy solution.”
Author: Christian Koehl
