Wolfsburg, Germany - September 02, 2024

Storyline:
German automotive giant Volkswagen is considering closing its production plants in Germany to cope with rising costs, said the group on Monday.

Alongside these potential closures, Volkswagen has also hinted at possible layoffs. The group said it had to cancel a long-standing agreement with labor unions in Germany, which has been in place since 1994 and aimed at preventing compulsory redundancies until 2029.

The step has not yet been agreed with the employee side.

Profit margins at Volkswagen's passenger car brand have long been depressed, and the group is looking to improve its financial position by reducing costs. However, in the transition to electric vehicles, consumer spending has slowed and cost cutting has become more difficult.

Volkswagen currently employs about 650,000 people worldwide, nearly 300,000 of them in Germany. The closure plan, if it goes ahead, would be the first in the carmaker's 87-year history to close a plant in Germany and could lead to a clash with the German company's works council.

The works council head said it would mount "fierce resistance" against the executive board's proposal.

Shotlist:
FILE: Wolfsburg, Germany - Nov 2018:
1. Headquarters of Volkswagen;
FILE: Wolfsburg, Germany - Date Unknown:
2. Various of Volkswagen plant;
3. Various of signs of Volkswagen, people walking on road;
4. Volkswagen cars parking at roadside;
FILE: Wolfsburg, Germany - Aug 23, 2016:
5. Various of Volkswagen factory exterior;
6. Various of Volkswagen car assembly line.

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