Volkswagen to Cut Jobs and Close Factories

Volkswagen is set to close at least three factories in Germany and cut tens of thousands of jobs as part of a significant cost-saving initiative, marking the first domestic plant closures in the company's 87-year history. The works council head, Daniela Cavallo, emphasized the seriousness of these plans, which also include a proposed 10% pay cut for all employees of the VW brand. This drastic restructuring is a response to increasing competition, particularly from China, and declining sales in major markets, compounded by the costly transition to electric vehicles. The company has issued a second profit warning in three months, indicating a challenging market environment. Union resistance is expected as discussions continue, with Cavallo hinting at potential strikes if management does not reverse its plans. Additionally, the announcement follows the controversial deportation of Volkswagen’s chief marketing officer for China, Jochen Sengpiehl, due to drug-related issues.