VW Cost-Cutting Measures — Union Calls for a Day of Protest

Following the protests at Mercedes, IG Metall is now calling for a day of action at VW as well to oppose new cost-cutting plans. The union announced that nationwide actions will take place at all company locations on Thursday, during the supervisory board meeting where potential cuts will be discussed.

• In Wolfsburg, a rally is planned directly in front of the executive board building. Among those scheduled to speak there is works council chair Daniela Cavallo.
• Additional rallies are planned in front of the factory gates in Emden, Zwickau, Hanover, and Kassel, among other locations. Organizers expect the largest turnout in Zwickau and Emden. 
• At the Porsche sites in Stuttgart and Weissach, there will be car parades, and at Porsche Leipzig, a photo campaign.
• At Audi in Ingolstadt, a flash mob is planned, and in Neckarsulm, a protest in front of the factory gates.
• Protests are also planned at the MAN sites in Munich, Nuremberg, and Salzgitter, as well as at the software subsidiary Cariad.

No warning strikes yet

According to IG Metall, these are not labor disputes. “These are informational or protest events, not warning strikes,” the statement reads. At Volkswagen, the duty to maintain industrial peace still applies, so work stoppages are not planned for the time being.

With these actions, the union is responding to recent reports of the company’s intensified cost-cutting plans. On Thursday, the company’s supervisory board will meet in Wolfsburg to discuss the plans.

IG Metall President Christiane Benner described Thursday’s protests as “a clear signal to the executive board: Not with us!” The employees have already done their part, she said, referring to the collective bargaining agreement set to expire at the end of 2024. “We will not accept the constant attacks on our colleagues’ rights without putting up a fight,” Benner said, according to a statement. She is calling for ideas and proposals on how to ensure full capacity at the plants.

VW Plans to Intensify Cost-Cutting Measures

According to “Manager Magazin,” VW plans to significantly intensify its cost-cutting measures: Up to 100,000 jobs could be cut worldwide—twice as many as previously planned. Four VW Group plants in Germany are reportedly even facing closure: Hanover, Emden, Zwickau, and Neckarsulm. According to “Spiegel,” vehicle production there could wind down by the end of 2034.

So far, VW has only confirmed that the Group Executive Board is “working intensively on a future plan for the company’s restructuring,” but did not provide any details. The goal is a “comprehensive transformation.” Once the matter has been referred to the supervisory board, this plan is to be implemented.

Group CEO Oliver Blume had already announced in the spring that he was working on a new “Vision 2030” for the group and intended to significantly tighten cost-cutting measures in the process. Blume stated that the cost-cutting measures agreed upon at the end of 2024 were no longer sufficient in light of the worsening business environment.

State Wants to Prevent Plant Closures

A heated exchange is now looming at Thursday’s supervisory board meeting. IG Metall and the VW works council have announced their opposition to the plans. The state of Lower Saxony also opposes plant closures. The state holds a 20 percent stake in VW and has two representatives on the supervisory board. The employee representatives currently hold the majority on the board; IG Metall President Benner is even the board’s vice chair.

According to media reports, the company already has an alternative plan should the proposals fail to pass the supervisory board: In that case, an extraordinary shareholders’ meeting could be convened to let the shareholders vote on the matter themselves. There, too, the state holds a blocking minority under the VW Act and can veto important resolutions.

Cuts of 37,000 jobs already confirmed

Volkswagen has already announced that it will cut 50,000 jobs across the group in Germany by 2030. 35,000 jobs are to be cut at the core brand, with the remainder at subsidiaries such as Audi and Porsche. More than 37,000 employees have already signed the relevant agreements.

Vehicle production in Dresden recently came to an end, and the company is currently seeking a solution for Osnabrück, where convertible production is set to end next year.

Thousands protested at Mercedes

Last Friday, there had already been nationwide protests at Mercedes-Benz against the company’s cost-cutting measures. IG Metall reported that a total of more than 33,000 employees took part. The first protests had also taken place at VW that day: According to IG Metall, more than 4,000 employees at the VW plant in Emden, East Frisia, protested against the cost-cutting plans of the Lower Saxony-based automaker.

Most recently, a fierce collective bargaining dispute erupted at VW in 2024. IG Metall brought production to a standstill several times with warning strikes. It wasn’t until shortly before Christmas that a compromise was reached following a week-long marathon of negotiations. Layoffs for operational reasons were ruled out; job cuts will be achieved primarily through partial retirement and severance programs.