VW labor leaders vow to resist deeper job cuts and plant closures pushed by CEO

Volkswagen’s labor leaders, spearheaded by Works Council Chair Daniela Cavallo, are pushing back against proposed deep cost cuts that include doubling planned job reductions to 100,000 and shuttering four German plants. The dispute erupted during a pivotal supervisory board meeting in Wolfsburg, where Cavallo told hundreds of protesting workers that employees did not create the crisis and accused management of failing to address structural challenges. Volkswagen’s leadership, led by CEO Oliver Blume, argues that sweeping restructuring is necessary to restore competitiveness amid eroding profits in China and high operating costs in Germany. The company confirmed in a statement that management and the supervisory board share concerns about the group’s future and are developing a plan to make Volkswagen and its brands faster, more robust, and more competitive. The standoff reflects broader tensions between management and labor, with Europe’s largest automaker under intense pressure to slash costs across its German operations. Reports suggest the proposed closures could target Audi’s Neckarsulm plant between 2031 and 2034, though Audi management has discussed alternative uses for the site with labor representatives. Lower Saxony, which holds a 20% stake in Volkswagen and holds veto rights, has signaled openness to retooling factories for defense contractors or halting production by not assigning new models to certain sites. Labor leaders have criticized management’s handling of the industry’s shift toward software and electric vehicles, with IG Metall Chairwoman Christiane Benner calling the approach irresponsible. Any decision to proceed with closures or deeper cuts faces significant internal resistance, as labor representatives hold half the seats on the supervisory board, with Lower Saxony typically siding with labor. The Wolfsburg plant alone employs around 70,000 people, underscoring the stakes of the dispute. The crisis extends beyond Volkswagen, reflecting broader challenges facing the global automotive industry.