Volkswagen Works Council Reaffirms Opposition to Factory Closures Amid Savings Plan
Amid reports of a new €60 billion savings program at Volkswagen, Daniela Cavallo, Chair of the General and Group Works Council, has firmly stated that factory closures are not on the table. The works council views the reports as a confirmation of ongoing efficiency programs rather than a new development.
Commitment to Protecting Jobs
Cavallo emphasized the commitment made in the December 2024 agreement with Volkswagen AG, stating, “With us there will be no factory closures.” This agreement, reached after extensive negotiations, explicitly ruled out plant closures and operational redundancies in exchange for a restructuring program aimed at cutting 35,000 jobs in Germany by 2030. These job reductions will be achieved through voluntary measures such as partial and early retirement and severance packages.
New Savings Program and Underlying Challenges
According to Manager Magazin, the Volkswagen Group is planning a new savings program of approximately €60 billion, aiming for a 20 percent cost reduction by 2028. This move is reportedly driven by sluggish sales in China and tariffs imposed in the United States, indicating that previous savings efforts have not been sufficient.
Volkswagen’s Response
Volkswagen responded cautiously to the reports, referencing the existing savings programs already underway across its brands. A spokesperson stated that the company has already achieved savings in the double-digit billion euro range, successfully mitigating the impact of geopolitical factors like US tariffs and remaining on course with its strategic objectives.
Looking Ahead
Oliver Blume, CEO of Volkswagen, is scheduled to provide an interim update on the company’s progress at the annual press conference on March 10th. This update is expected to shed further light on the details of the new savings program and the company’s overall strategy for navigating the evolving automotive landscape.
About Daniela Cavallo
Daniela Cavallo has been the Chairwoman of the Group, General and local Works Council of the Volkswagen Group since May 2021. According to Wikipedia, Cavallo was born in 1975 to Italian parents who immigrated to Wolfsburg, Germany, and began her career at Volkswagen in 1994. She has held various positions within the company and the works council, demonstrating a long-term commitment to representing the interests of Volkswagen employees. Industriall Union highlights her extensive experience and ability to function collaboratively with both employees and management.
Cavallo also spoke about the importance of immigration, stating there is an “immense need” for immigrants.