Volkswagen to Propose Up to 100,000 Job Cuts as Union Plans Protests at Thursday Board Meeting

Volkswagen is preparing to formally propose up to 100,000 job losses to its supervisory board on Thursday. The plans include potential contraction or closure of several plants as part of a cost-cutting program that doubles an earlier target and runs through 2030. The German Association of the Automotive Industry stated that handing some car plants to foreign ownership could save jobs.

Its president, Hildegard Müller, said reality has overtaken political goals and is increasingly jeopardizing employment. She added that the economic crisis affects the entire European industry and that not all factories and suppliers can remain open under current conditions.

Müller said Germany and Europe require bold decisions that will end habits and entitlements the country can no longer afford.

The automotive sector employs an estimated 3 million people directly and indirectly in Germany. A Boston Consulting report published last month found Europe’s car production capacity exceeds demand by more than 5 million vehicles a year, equal to 35 production sites. The VDA statement coincided with the Volkswagen board meeting.

Trade union IG Metall called for a day of action at all Volkswagen locations on Thursday, with events announced at Emden, Zwickau, Hanover and Kassel. Additional protests are planned at Porsche, Audi and the truck and bus manufacturer MAN, according to Die Zeit. The proposal comes after earlier plans that were already viewed as significant for the car industry and the wider economy.