Volkswagen workers are digging in against the automaker's plan to cut up to 100,000 jobs as part of a sweeping turnaround strategy.
The details: Hundreds of employees gathered Thursday outside Volkswagen's headquarters in Wolfsburg as CEO Oliver Blume met with labor representatives to seek support for proposed workforce reductions across the group, including Audi and Porsche, according to Reuters.
Union representative Thorsten Groeger warned Volkswagen that cutting jobs could trigger a "major conflict" with workers.
VW works council head Daniela Cavallo said the restructuring plans have created "great fear and deep uncertainty" across the company's factories and offices.
What they’re saying: "Industrial jobs here are at risk of going down the drain," unless Volkswagen and politicians got their act together, said Cavallo in a speech in Wolfsburg, per Reuters.
Why it matters: Growing resistance from labor groups could complicate and slow Volkswagen's restructuring efforts, extending uncertainty around the automaker's manufacturing footprint, investment plans and future product strategy.
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Between the lines: Blume's proposal, which could include closing four plants, is being described as the largest overhaul in Volkswagen's history.
Proposed closures of plants in Hanover, Zwickau, Emden and Audi's Neckarsulm facility could eliminate up to 45,000 jobs, according to sources familiar with the matter.
Combined with roughly 50,000 previously announced job cuts, total workforce reductions could approach 100,000.
Volkswagen is also expected to reduce planned investment by about 15% to just over €130 billion ($148 billion) over the next five years.
The automaker is also reportedly considering spinning off its core Volkswagen brand and parts operations into separate entities.
Bottom line: This could ultimately influence future product availability, brand strategy and investment priorities across the Volkswagen Group.
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