Tensions rise at Volkswagen as workers demand clarity on factory closures

Volkswagen’s top labor representative issued an ultimatum to management Friday, demanding immediate clarification on media reports of planned factory closures and mass layoffs that have left employees in uncertainty.

Daniela Cavallo, chairwoman of the company’s powerful works council, sharply criticized the executive board in a strongly worded statement, calling its handling of the workforce “disrespectful” and urging CEO Oliver Blume to personally inform employees about any restructuring plans.

“The Executive Board’s treatment of the workforce could not be any more disrespectful,” Cavallo said. “It is now up to Oliver Blume to at least limit the extent of this massive damage. It is completely irresponsible to leave the workforce in the dark and send them on holiday like this.”

German media reported this week that Blume has proposed ending vehicle production at several German plants, potentially putting around 40,000 jobs at risk. According to Der Spiegel, the plan calls for shuttering production at the Zwickau and Emden factories within five years, followed by the commercial vehicle plant in Hannover in 2032 and Audi’s plant in Neckarsulm in 2034.

A key meeting of Volkswagen’s Supervisory Board in Wolfsburg ended late Thursday, and no statement was made regarding the reported factory closures or job cuts. According to Süddeutsche Zeitung, the board rejected management’s restructuring proposal — which included plant closures and job cuts — by a 12-7 vote. Labor representatives and the state of Lower Saxony, which holds a 20% stake in the company, led the opposition.

Cavallo said the weeks of speculation and uncertainty must end immediately. She demanded that management provide clear answers over the course of Friday.