German state leader urges joint effort to solve Volkswagen crisis
Kretschmer backed management reforms and said talks with VW leaders have not yet produced a solution, as the company weighs cuts at 10,000 Saxony jobs.
- Saxony Premier Michael Kretschmer urged Volkswagen and trade unions to cooperate on job and capacity cuts, telling Reuters "it simply has to become better, easier, and more cost-effective to manufacture in Germany," though recent meetings with company leadership yielded no specific solution.
- Volkswagen is Saxony's largest private employer, employing 10,000 people across three sites, with tens of thousands more jobs tied to the company through its supplier network, placing intense pressure on regional political leaders to shield industrial employment.
- Kretschmer proposed extending the work week from 35 to 40 hours and expanding EU tariffs on China-made plug-in hybrids, while Germany's biggest union IG Metall has made keeping a 35-hour week a core demand.
- Meetings last week with Volkswagen CEO Oliver Blume and Supervisory Board Chairman Hans Dieter Poetsch did not yield a specific solution, though decisions on Zwickau's future are needed in the coming months to steady worker morale and allow time for transition.
- High energy prices in Germany and the European Union's plans to phase out combustion engines complicate Volkswagen's turnaround, as Kretschmer criticized these structural hurdles extending beyond local management's control.
8 Articles
8 Articles
German state leader urges joint effort to solve Volkswagen crisis
The Prime Minister of the German Land Saxony proposed on Monday the extension of the work programme to a Volkswagen factory in the region, in order to reduce the risk that it will be closed in the framework of the wide cost reduction plan. Volkswagen employees, the company's management and the political leaders must collaborate to limit the effects of staff and production reductions and [...] Article Volkswagen, under the pressure of cost reduct…
The Prime Minister of Saxony proposes to increase the work programme from 35 to 40 hours to reduce the costs of Volkswagen plants, in the context of uncertainty about the power plant in Zwickau.
WOLFSBURG. The situation is getting worse with the German car group. Daniela Cavallo plays a key role in the Group with 662,900 employees.
Prime Minister of the State, Michael Kretschmer, is under pressure to protect jobs in the automotive industry in Saxony
The Prime Minister of the German Land Saxony proposed on Monday the extension of the work programme to a Volkswagen factory in the region, in order to reduce the risk that it would be closed under the broad cost reduction plan.
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