A POPULAR carmaker is shutting four plants and axing up to 100,000 jobs as part of a major restructure.
The car brand could see up to 100,000 jobs lost as the company deals with declining profits.
Volkswagen is currently trying to navigate a whole host of issues as it adapts to new challenges.
The world’s second-largest car maker and best selling in the UK is reportedly struggling with high domestic operating costs, intense electric vehicle competition, and dipping profits.
Worldwide, there could be as many as 100,000 jobs lost over the next few years, with the bulk of them coming in Germany.
A total of 50,000 positions in Germany could be lost by 2030, with 19,000 jobs expected to be cut by the end of this year.
The four plants in Germany that have been earmarked for closure are in Hanover, Zwickau, Emden and Audi’s Neckarsulm facility.
The company has also vowed to reduce executive salaries by 10 per cent.
Volkswagen bosses have said in recent years that they have been facing fierce competition from the Chinese electric vehicle market, ultimately impacting their earnings.
In the near future, the company intends to cut back its portfolio in order to focus on the core business.
Volkswagen’s work council and the IG Metall union addressed the concerns surrounding the job losses and plant closures with a vague statement.
They said: “Should such plans go ahead, we would do everything in our power to prevent them.”
Speaking to Manager Magazin, Volkswagen added: “The relevant facts of the matter will be discussed and approved by the relevant bodies. We will not pre-empt this process.
“The Group Executive Board has repeatedly emphasised that our current business model no longer works for all brands in its present form.”
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