Volkswagen's Unexpected Plant Closures Shake German Auto Industry

Volkswagen plans to close at least three German plants, affecting all its domestic sites. The move was announced by the company's works council amid increasing competition and economic challenges. The IG Metall union demanded sustainable future strategies instead of plant closures. Pay negotiations are set to resume.

Volkswagen has announced plans to shutter at least three of its plants in Germany, according to the head of the company's works council. This significant decision comes as the automaker grapples with increasing competition and economic hurdles.

Employee council chief Daniela Cavallo relayed to workers that all German VW facilities are potentially impacted by the closures, though there has been no comment from Volkswagen's management. This move challenges a long-standing job protection agreement preventing layoffs until 2029.

The IG Metall union has opposed the closure plans and urged Volkswagen to present viable alternatives for the future during the upcoming pay negotiations. The discussions are expected to continue as soon as Wednesday.

(With inputs from agencies.)