Volkswagen: now workers are terrified, but managers and shareholders want to close plants and massive layoffs

The climate in Wolfsburg, headquarters of Volkswagen, is bad. Jobs, even for executives, are no longer secure but are now something of an uncertainty after the cancellation of the tender for German workers.

Volkswagen management has defended its more stringent austerity measures in the face of worker protests. The reason: two million fewer cars will be sold in Europe each year than before the pandemic. In light of this, neither plant closures nor mandatory layoffs can be ruled out, and uncertainty would cause him and his colleagues many problems. “Will we have to work reduced hours, Will there be a four-day week, or maybe we will be laid off altogether?”

Questions that are on the minds of the workforce. It’s about money, about their future. “People’s livelihoods are at stake.” Automotive industry: alarming situation at VW Like many other VW employees, Salzwedeler built his own house and took out loans. “You always thought your job was secure. But now fears dominate conversations during breaks.

Volkswagen has about 120,000 employees in Germany. About 100,000 of them work in Lower Saxony, including as many as 60,000 at the Wolfsburg headquarters, just a few kilometers from the state border with Saxony-Anhalt. There are also locations in Dresden, Chemnitz and Zwickau. There are also offices in Bavaria, Berlin, and Hesse. In terms of media, Chemnitz may be in danger. Osnabrück and Salzgitter are also considered potentially at risk.  Workers believe that plants in East Germany will be the first to close. Everyone is scared, but no one can do anything about it

Shareholders push for cuts and soon

According to Wendelin Wiedeking, former head of Porsche and member of VW’s supervisory board and one of the main shareholders, the Volkswagen Group cannot avoid drastic cuts. “VW would do well to undergo a horse cure in Germany, “ Wiedeking told the Bild newspaper. Plant efficiency at home plants has always lagged behind many other sites, including VW-owned facilities. “There were always too many people on board.”

VW CEO Oliver Blume has no choice but to embark on a tough restructuring path. “Mr. Blume now has to pay for everything that his predecessors after Martin Winterkorn did not do. The causes of the VW Group’s problems have been known for years,” said Wiedeking, who led Porsche from 1991 to 2009 and radically restructured the group. VW has “a good CEO who will solve the problem.” For the first time at the helm of VW is a manager “who openly addresses what needs to be done.”

Wiedeking calls for new facilities and greater efficiency. “All locations have to face international competition,” he told the newspaper. Even the Wolfsburg location. “Change is necessary. Now you have to see that you can do it in a reasonable amount of time.” Despite the challenges, Wiedeking was optimistic. “VW has a history. VW is also a company that can be ready for the future.” He called for a common approach among the workforce, employee representatives, and management in implementing the necessary changes.