Labor representatives at Volkswagen have firmly rejected any possibility of shutting down German manufacturing facilities, maintaining their unwavering stance against plant closures while expressing willingness to consider alternative solutions for underutilized production sites.
The automaker is seeking ways to reduce surplus capacity across its German manufacturing network while avoiding facility shutdowns, which were prohibited under a 2024 restructuring agreement with labor unions. Potential alternatives being explored include defense industry partnerships and collaborative arrangements with Chinese companies.
Three key union figures – works council leader Daniela Cavallo, IG Metall union chief Christiane Benner, and regional union representative Thorsten Groeger – emphasized that the 2024 agreement protecting German facilities remains non-negotiable.
“The fundamental situation has not changed — nor have the red lines set by the employee side,” they stated. “With us as the general works council and IG Metall, there will be no plant closures.”
The German automaker has seen its profit margins decline due to sluggish consumer demand and expensive investments in electric vehicle technology. Additional pressures have mounted from intense Chinese competition, increased tariffs, and Middle Eastern conflicts that have raised operational costs and created market uncertainty.
Following another earnings decline early this year, CEO Oliver Blume intensified efforts to find additional cost savings.
Blume has suggested potential facility-sharing arrangements with Chinese partners to address the overcapacity issue, though no formal discussions have been announced. Meanwhile, negotiations continue regarding a potential sale of Volkswagen’s Osnabrueck facility to a defense contractor.
During a Financial Times conference in London this week, Volkswagen brand leader Thomas Schaefer indicated the company was working to manage excess production volumes and described facility closures as “the second-best option.”
The union representatives expressed openness to considering proposals from within the company or external partners, as long as these initiatives honor the commitments management made in 2024.
Cavallo, Benner and Groeger reiterated their core principles of maintaining quality employment, career advancement opportunities and job stability, vowing to vigorously oppose any measures that contradict these values both currently and going forward.
