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SPD Levels Sharp Criticism at VW Leadership

SPD Levels Sharp Criticism at VW Leadership
Protests against the threatened closure of the VW plant in Zwickau continue. The Saxony SPD is also sharply criticizing the plans of the company's top management. / Photo: Jan Woitas/dpa
From: DieSachsen News
More than 100,000 people could be affected if the VW plant in Zwickau were to close. Why the SPD is warning that this would send a “disastrous signal” for Germany as a business location.

The Saxon SPD is harshly criticizing the company’s top management over the impending closure of the VW plant in Zwickau. The plans of VW CEO Oliver Blume are evidence of irresponsibility. “If the only vision a top German executive has is to close plants in Germany in order to shift production to cheaper locations, then perhaps he is not a top executive, but a mismanager,” said SPD leader Henning Homann. He also serves as the spokesperson for economic and labor affairs in the SPD’s state parliamentary group.

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Employees Should Not Pay the Price for Management’s Lack of Planning

“It is irresponsible to make the people on the assembly line—who have been generating the company’s profits for decades—pay the price for the lack of planning that has prevailed at the executive level for years,” Homann emphasized. Saxony will fight “with all means” for the plant in Zwickau. “This is about more than just jobs. Closing the plant in Zwickau would mean the Volkswagen Group’s withdrawal from eastern Germany. That would send a disastrous signal for Germany as a business location.” 

On Thursday, following its supervisory board meeting on potential cost-cutting measures, VW still provided no details regarding possible plant closures or job cuts. On Friday, Homann assumed that the plans presented had evidently failed to convince the board. “This gives all parties involved the opportunity to rethink this unambitious list of proposals. It is all the more important that politicians and unions stand firm for the future of the plants and the employees.”

“Cuts alone are not a strategy.”

Economics Minister Dirk Panter (SPD) is certain that the Zwickau plant is Volkswagen’s most efficient production site. “I expect VW to present a genuine vision for Zwickau’s future, demand recognition for the employees’ performance, and appeal to the corporate social responsibility enshrined in the Group’s principles,” he emphasized: “The impression is that the company currently lacks a viable strategy for the future, because cutting costs alone is not a strategy.”

VW in Zwickau currently employs around 8,000 people. The Ministry of Economic Affairs points out that another 40,000 to 50,000 jobs at suppliers and thousands of families depend on it. “In total, more than 100,000 people in the region are directly affected.”

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