Key facts
- German union IG Metall warns of strong opposition to Volkswagen's potential restructuring plans.
- Volkswagen faces a dispute with unions over a significant overhaul that could include plant closures and 50,000 job cuts.
- Saxony state premier Michael Kretschmer urged a collaborative approach to address Volkswagen's challenges.
- Kretschmer emphasized the need to maintain production in Germany and reduce cost disadvantages.
- A decision on the future of Volkswagen's Zwickau plant is expected in the coming months.
Saxony's state premier Michael Kretschmer has called for a united effort from Volkswagen's workers, management, and political leaders to navigate the automaker's restructuring, aiming to minimize job and capacity cuts and boost competitiveness. Kretschmer stressed the importance of keeping production within Germany.
Kretschmer met with Volkswagen CEO Oliver Blume and Supervisory Board Chairman Hans Dieter Poetsch to discuss the future of the Zwickau plant, a key site for the company in Saxony. He indicated that a decision regarding Zwickau is needed in the coming months to ease worker morale and allow for a transition to new models.
The union IG Metall has already warned of strong opposition to potential restructuring plans, which could include plant closures and approximately 50,000 job reductions. The union is particularly focused on maintaining the 35-hour work week, while Kretschmer suggested renegotiating this to 40 hours as a potential solution.
Kretschmer cited high energy prices in Germany and criticized the European Union's combustion engine phase-out targets as challenges. He also supported Volkswagen management's efforts to simplify company structures and model portfolios, while suggesting that EU import tariffs on Chinese plug-in hybrids could be part of a broader solution, though not the core issue itself.