Volkswagen Aims to Cancel a No-layoffs Pledge and Won’t Rule Out Closing Plants in Germany

Employees work on a chassis and drivetrain with battery of an electric car at the production plant of German car manufacturer Volkswagen in Zwickau, eastern Germany, on August 20, 2024. In Zwickau, the automotive cradle of the former GDR, multiple crises are fuelling the influence of the extreme right, as is the case almost everywhere in Saxony before the regional elections on September 1. (Photo by JENS SCHLUETER / AFP) (Photo by JENS SCHLUETER/AFP via Getty Images)

FRANKFURT, Germany (AP) — Volkswagen says it’s not getting the cost reductions that it needs – and won’t rule out plant closings in its home country Germany. CEO Oliver Blume is also saying the company needs to end its job protection promise in effect since 1994 which bars layoffs through 2029. Germany’s industrial union and VW’s top employee representative have sharply criticized the possibility.