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Volkswagen set to close three German plants and cut thousands of jobs

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on Euronews or enjoy below:

🗞️ Driving the news: Volkswagen plans to shutter three German plants, reduce workforce numbers, and implement a 10% pay cut for remaining employees, amid profit declines and missed EV targets
This historic move would mark the first domestic plant closures in VW's 87-year history
Union leaders are scheduled to meet VW executives on Wednesday for further negotiations

🔭 The context: The automaker’s profits are under pressure from sluggish demand in Europe and China, as well as a costly and problematic shift to electric vehicles
Amid these challenges, VW leadership claims German production costs exceed targets by up to 50%, pushing them to downsize operations
Employee representatives are calling for clear targets and a national strategy to support Germany’s industrial stability

🌍 Why it matters for the planet: Volkswagen’s challenges underscore broader difficulties in transitioning to electric vehicles at scale, essential for reducing automotive emissions
With EVs at the center of Europe’s climate goals, VW’s downsizing suggests a bumpy path ahead for the industry’s decarbonization goals

⏭️ What's next: VW will present its third-quarter financials this week, likely providing further insight into its restructuring
Talks with unions continue as workers seek to protect jobs, pressuring VW to clarify the strategic goals driving these cuts

💬 One quote: “We are not productive enough at our German sites...some of our German plants are twice as expensive as our competitors,” - VW Passenger Cars CEO Thomas Schäfer

📈 One stat: VW operates 10 plants in Germany, employing around 300,000 workers

Click for more news covering the latest on electric vehicle and labor rights 

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