As Callanish became aware, Volkswagen is considering the possibility of closing various manufacturing plants in Germany.
According to media reports, the German automaker is forced to cut its costs and is therefore testing the closure of four plants – in Hanover, Emden, Zwickau and Neckarsulm. This will mean that up to 10,000 jobs will be at risk.
Volkswagen, along with its various brands, is the largest German automaker and probably the largest consumer of steel in the country.
VW has not yet specified the number of jobs in Germany or confirmed plant closures, but recently confirmed arrangements for broader job cuts of 50,000 positions across the group by 2030.
The Government of the state of Lower Saxony holds 20% of the votes in the group, and together with the representatives of the labor collective, it has a majority on the supervisory board. The State also has the right of veto when making important decisions.
A similar structure of state participation is observed in the steel company Salzgitter AG. Both the steel and automobile concerns have their main plants in Lower Saxony (Wolfsburg, Salzgitter), and their historical development has been closely linked to each other.
In a statement, Union IG Metall quoted the Prime Minister of Lower Saxony, Olaf Fox, as saying: "We drew attention to these plans because they were reported in the media. Specific measures should be discussed and adopted by the Supervisory Board.
He adds that "the state of Lower Saxony will not approve a project in which the closure of factories is seen as a supposedly simple solution."
Author: Christian Kel
Kallanish.com
