Volkswagen's Job Security Program Faces Termination Amidst Competitive Pressure

Volkswagen plans to end its job security program, established in 1994, which has prevented job cuts until 2029. The IG Metall union highlights that this could affect several German factories, especially in Lower Saxony and Hesse. The decision stems from competitive pressures from Asian automakers.

Volkswagen has announced its intention to terminate its long-standing job security program, which has been in effect since 1994 and was set to prevent job cuts until 2029. The decision comes as the company faces growing competitive pressure from Asian automotive manufacturers.

The IG Metall union has expressed concerns, pinpointing several German factories that could be impacted by this move. These include plants in Lower Saxony, such as Brunswick, Emden, Hanover, Salzgitter, and Wolfsburg, as well as the Kassel plant in Hesse. These factories are integral to Volkswagen's operations, producing various vehicle models and components.

Sectors potentially affected by this change include local economies, given that these factories are significant employers in their regions. For instance, the Wolfsburg plant alone employs around 70,000 people. The move is a significant shift in Volkswagen's operational strategy amidst increasing global competition.

(With inputs from agencies.)