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Volkswagen is facing the largest strike in Germany’s history, with nearly all of its 120,000 German employees participating since the beginning of December, according to the IG Metall trade union.
This “battle” stems from escalating tensions between Volkswagen’s management and its workforce over benefits and wages. Starting from the second quarter, the group has continuously announced production cutbacks, wage cuts, and layoffs of thousands of employees at its factories.
“This will be the toughest personnel battle Volkswagen has ever faced,” said a representative of IG Metall.
Volkswagen previously told Reuters that these were the last resorts to save the European group as profits and revenues plummeted.
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The strike began in December and is expected to last indefinitely. Photo: Reuters |
Initially, Volkswagen negotiated a 10% wage cut for all employees to save costs, but this decision faced a wave of opposition. Soon after, the decision to lay off tens of thousands of workers was announced, along with the closure of factories.
The company’s oldest factory in Osnabruck, Germany, is one of three production facilities facing closure this year. This is where luxury cars such as the Porsche 718 Cayman and 718 Boxster, and the Volkswagen T-Roc Cabriolet, are manufactured.
It’s not just in Germany that Volkswagen is facing challenges. The company’s factory in Brussels, Belgium, has also ceased operations and is awaiting a new owner, resulting in the discontinuation of the Audi Q8 e-tron from February 2025.
Currently, the trade union and Volkswagen are in their final dialogue to find a solution. However, if they cannot reach an agreement, the strike will continue, and Volkswagen risks falling behind in delivering vehicles to its customers.
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Volkswagen’s abandoned factory in China. Photo: The New York Times |
All these difficulties are predicted to stem from the Chinese market. Volkswagen was once the leading automobile manufacturer in China, with a range of popular brands from Audi and Porsche to VW. However, the rise of domestic carmakers has caused a sharp decline in Volkswagen’s production, revenues, and profits in the country.
Currently, Volkswagen’s factory in Xinjiang, China, is also abandoned.
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