Volkswagen boss braces German workers for more job cuts

Volkswagen's CEO, Oliver Blume, has warned German workers that their company is likely to face another round of job cuts, with an additional 50,000 positions potentially being eliminated worldwide to reduce costs. Speaking to about 10,000 workers at VW's Wolfsburg factory, Blume stated that "about half of the adjustments required would fall in Germany."

He challenged the long-term future of three Volkswagen plants and an Audi factory in Germany, claiming that continuing operations there would cost the company 1.5 billion euros annually. Unions have criticized VW for not being transparent with workers, with the VW Works Council head accusing management of withholding relevant information and missing an opportunity to explain the situation.

Union leader Christiane Benner of IG Metall acknowledged the challenges posed by China and US tariffs but proposed alternative cost-cutting measures instead of job losses. The collapse of sales in China has become more enduring than previously thought, as Chinese competitors, such as Chery and BYD, gain market share in Europe. Other automakers have also indicated that German plants must adapt to lower costs, with BMW opening a new plant in Hungary and Mercedes-Benz expanding its Hungarian facility.

VW's management must negotiate the cuts rather than impose them, given the co-determination system in Germany, where labor representatives hold half the seats on supervisory boards at large companies. The German state of Lower Saxony, a shareholder of Volkswagen and home to several manufacturing sites, also holds supervisory board seats.