Volkswagen workers have joined nationwide protests in Hanover against proposed wage cuts and job losses, as the German car industry warns of a potential collapse of employment unless society and workers accept bold decisions to address competition from China and other rivals.
VW proposes up to 100,000 job losses
Volkswagen is preparing to formally propose up to 100,000 job losses, double the amount previously planned, by 2030. The plans include potential contraction or closure of several plants. The trade union IG Metall has called for a day of action at all VW locations, with events already announced at Emden, Zwickau, Hanover, and Kassel. According to Die Zeit, more events are planned at Porsche, Audi, and MAN.
VDA warns of dramatic consequences
The German Association of the Automotive Industry (VDA) issued a statement timed to coincide with the VW supervisory board meeting, warning that political goals have been overtaken by reality. Hildegard Müller, president of the VDA, said: "Reality has overtaken political goals and approaches, increasingly jeopardising jobs. The economic crisis is affecting the entire European industry; the consequences are visible and tangible every day – and they are becoming increasingly dramatic."
Foreign ownership as a solution
Müller suggested that opening German car plants to foreign manufacturers could save jobs. "We will not be able to keep all the factories and suppliers open this way. We should therefore open these locations to foreign manufacturers, for example. Every location we can keep here secures jobs." She added that Germany and Europe face a situation demanding bold decisions, including significant changes for people and the end of habits and entitlements the country can no longer afford.
Industry under pressure
The automotive sector is the backbone of the German economy, employing an estimated 3 million people directly and indirectly at companies like Volkswagen, Mercedes, and BMW. A report by Boston Consulting published last month found that Europe's car production capacity now exceeds demand by more than 5 million vehicles a year, equivalent to 35 production sites. The VDA's statement highlights deeper changes in Europe, with fewer cars being bought by the public.
Political implications
The VDA warned that political leaders must accept that neither Berlin nor Brussels can insulate factories from changes in business models. "To remain blind to this would have profound anti-society consequences," the association said. "These decisions are difficult and must be developed in dialogue with all stakeholders. They will require a willingness to change from all of us."
