Volkswagen’s problems come at a time of economic uncertainty, weak growth, rising energy prices and trade issues in the lucrative Chinese market.
Volkswagen abandoned labor agreements that guaranteed the preservation of jobs until 2029. Reuters reported this on Tuesday, September 10.
“Volkswagen has abandoned a number of labor agreements, including a guarantee of job security until 2029 at six German plants, indicating an increased possibility of cuts from 2024, promised by representatives of workers to fight,” the agency said.
Europe’s top automaker scrapped decades-old job guarantees as part of a cost-cutting program as it tries to compete with cheaper Asian companies, Reuters wrote.
“Volkswagen’s management took this step after threatening to close factories on German soil for the first time in its 87-year history, sending shockwaves through the global automotive sector and worrying the German government at its highest level,” the statement said.
The company’s director of operations, Gunnar Kilian, said that in this way Volkswagen AG is trying to reduce costs in Germany to a competitive level.
We remind you that the German automaker Volkswagen, for the first time in its 87 years of existence, has announced its intention to close factories in Germany and reduce staff due to the worsening economic situation.
In July, the Ukrainian car fleet was replenished with 20 thousand used cars imported from abroad.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.