German the automotive sector warned that the European auto industry could face serious job losses if companies, employees and politicians do not accept that major changes are necessary in order to respond to the increasing challenges in the market.
As an attempt to get out of the crisis, Volkswagen presented a plan according to which he could eliminate as many as 100.000 jobs by 2030. This move caused a wave of protests by employees and unions across Germany, writes "The Guardian".
What's happening at Volkswagen?
Volkswagen's board of directors, led by CEO Oliver Blume, wants to phase out production at two of its factories within five years. After the closures in Zwickau and Emden, the Hannover factory would close in 2032 and the Neckarsulm factory in 2034. The German "Spiegel" learned this from sources close to the supervisory board.
Photo: AP Photo/Martin MeissnerVolkswagen has announced the layoff of 100.000 workers
Around 40.000 people work in these four German factories. In addition, the Volkswagen boss wants to cut 50.000 jobs by 2030. A spokesman for the supervisory board and a worker representative on the supervisory board refused to comment on the allegations to the German media.
Volkswagen is making less and less money from cars. Operating profitability in the first quarter of 2026 was only 3,3 percent, which is far below the target of 8 to 10 percent.
Blume's idea is to triple the weak profitability and raise it to nine percent by 2030.
The workers are rebelling.
The German Association of the Automotive Industry (VDA) warns that due to the crisis in the European auto industry, it is no longer possible to save all existing jobs, and that major changes are necessary.
VDA believes that one of the possible solutions would be the opening of certain German factories to foreign car manufacturers. In this way, the plants would not be closed, so jobs would be preserved.
Photo: AP Photo/Michael Sohn, fileWorkers and trade unions rebel, announce protests
Estimates show that the German auto industry directly and indirectly employs around three million people, including employees of large companies such as Volkswagen, Mercedes and BMW, as well as numerous suppliers.
Germany's largest metalworkers' union "IG Metal" has announced protests and actions at all major Volkswagen plants, including Emden, Zwickau, Hanover and Kassel.
According to the newspaper "Die Zeit", protests are planned at the companies Porsche and Audi, which are part of Volkswagen, and at the manufacturer of trucks and buses MAN.
What led to the crisis and is there a way out
According to the Guardian, European factories today have the capacity to produce more than five million vehicles per year than the market can absorb.
One of the main reasons is the decline in sales in China, due to the pressure of domestic competitors such as BYD, and their breakthrough into the European market. There is also the tariff on Donald Trump's cars, which costs Volkswagen five billion euros a year.
In addition, the electric car market is changing rapidly, and new investments are constantly needed.
Photo: Chinatopix-Via-APChinese cars are waiting for export
VDA believes that neither German nor European policy can protect factories from the changes brought by the new market environment. They warn that ignoring these changes could have serious consequences for society and the economy. The upcoming decisions will be extremely difficult and will have to be made in dialogue between the government, companies, unions and employees.
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