Volkswagen could soon close factories in Germany

The German car manufacturer Volkswagen is not ruling out closing factories in Germany as it seeks to save billions more in a cost-cutting program at its namesake brand, the automaker and its works council said Monday.

The group considers a major vehicle plant and a component manufacturing site in Germany obsolete, according to the works council, which vowed “fierce resistance” to management’s plans.

Volkswagen also announced the end of its job security program in place since 1994 that prevented job cuts until 2029. It said it would discuss all measures with the works council.

“The situation is extremely tense and cannot be overcome by cost-cutting measures alone,” VW brand chief Thomas Schaefer said in a written statement.

This restructuring project for the Volkswagen brand calls into question the foundations of the German group, denounced a representative of the IG Metall union.

“The management board presented an irresponsible plan today that shakes the foundations of Volkswagen and constitutes a massive threat to jobs and sites. We will not tolerate plans that the company is developing to the detriment of employees and which massively disrupt the regions of our country,” Thorsten Gröger said in a statement published after the group’s announcements.