Volkswagen Unveils Restructuring Plan; Works Council Rejects Plant Closures
Volkswagen announced a major restructuring plan to address weaker global demand and rising competition, including streamlining its model range by up to 50% and reducing production capacity to 9 million vehicles. The works council opposed plant closures and will only support voluntary job cuts.
Volkswagen has unveiled a comprehensive 12-point transformation plan to boost efficiency and profitability amid weaker global demand and intensifying competition. Key measures include streamlining the model range by up to 50%, cutting product complexity by as much as 75%, and lowering annual production capacity to 9 million vehicles.
The automaker's works council has rejected any plant closures and stated it will only back voluntary job reductions. The plan aims to adapt the company's structure to a more challenging market environment while avoiding mandatory layoffs.
Source: First Squawk