Volkswagen, one of the world's largest car manufacturers, is facing unprecedented challenges as it considers closing factories in Germany and ending its long-standing job security program. This decision comes in the wake of a significant cost-cutting initiative aimed at saving 10 billion euros ($11 billion). The move has sparked a strong response from Germany's largest union, AJ Metall, which is exploring various alternatives, including the possibility of a four-day work week, to counter the impact of these closures.
The auto industry is currently grappling with a slowdown in demand, particularly for electric vehicles, compounded by fierce competition from Chinese manufacturers. Volkswagen's complex governance structure has also drawn criticism, with analysts suggesting it hampers timely decision-making during critical periods. As negotiations between Volkswagen and the union are set to commence later this month, the prospect of strikes looms, potentially beginning in late November.
