- The potential closures of VW plants are causing alarm.
In the wake of potential Volkswagen factory shutdowns, Economics Minister Martin Dulig (SPD) has voiced his backing for Saxony's facilities. "We've been rattled and severely impacted by the news from Wolfsburg. The Free State remains committed to all Saxon sites and wholeheartedly supports our colleagues in Zwickau, Chemnitz, and Dresden," he declared, as stated in a release. Saxony also endorses proposals to reinstate a sales incentive for electric vehicles.
Volkswagen announced that it may need to implement factory closures and layoffs as part of its economizing initiative for the main VW brand. The previous employment stability agreement, which had barred layoffs until 2029, was also rescinded by the company.
Insufficient projected layoffs
The board indicated that a complete overhaul of the brands under Volkswagen AG is necessary, it was mentioned. "Even the shutdown of both vehicle-producing and component sites cannot be excluded in the present scenario without prompt actions." The proposed layoffs through early retirement schemes and severance packages are no longer deemed sufficient to meet the desired financial savings.
Volkswagen employs roughly 120,000 individuals in Germany. Saxony is home to about 11,000 workers, with layoffs announced at the Zwickau plant in early July due to poor demand for electric vehicles.
In light of Volkswagen's consideration of factory closures, including the Zwickau plant in Saxony, Economics Minister Dulig expressed his support for the Chemnitz facility as well. Despite the announced layoffs at Zwickau due to low demand for electric vehicles, Saxony continues to advocate for its automotive workforce.
