Volkswagen will close at least three factories in Germany. The works council, which at this point fears the loss of tens of thousands of jobs, raised the alarm about the concrete recovery measures that had already been revealed in recent months. Also planned is a 10% cut in wages for all employees and overall savings of around 4 billion.
The workers took to the streets in a spontaneous demonstration, and the Ig Metall union threatened consequences, calling the group’s top management’s project “unacceptable”, “a wound to the heart of Volkswagen”. Chancellor Olaf Scholz also had his spokesperson reiterate that “any management errors must not be the responsibility of the employees and the jobs must be maintained”.
The drama of the closure of the plants contributes to the strong political tension in Germany, where the so-called traffic light government (SPD, Greens and Liberals) risks jumping on economic issues, also in light of the autumn estimates that see the locomotive of Europe the second year in a row in recession. But the context is broader, given the strong crisis affecting the auto sector throughout Europe, and the news from VW also made noise in Italy, where the Minister of Enterprise Adolfo Urso warned: «It cannot be wait until the end of 2026, as required by the light vehicle regulation, to examine what has happened and possibly change course. We cannot wait until the end of 2027, as required by the regulation on heavy vehicles, to see what happens and then possibly change course. There will no longer be a car industry in 2027.”
The news of the closure came from a closed session, in which workers were informed of the plans prepared by management. “The board of directors wants to close at least three VW plants in Germany,” declared the president of the works council, Daniela Cavallo. The 49-year-old, daughter of immigrant workers from the province of Reggio Calabria, promises to fight during the event in Wolfsburg. “No factory is safe”, all the other sites will also be downsized” he warns.
The group, which has 8 brands, employs 120 thousand people in Germany, of which at least half are in Wolfsburg, the headquarters. VW operates a total of 10 plants in the Federal Republic, including 6 in Lower Saxony, 3 in Saxony and one in Hesse.
In September, the giant canceled the job security program that had been in place for over 30 years. And the Osnabrueck plant would now be particularly at risk, having lost a hoped-for order from Porsche. Today we need to reduce costs “significantly”, we read in a document addressed to employees, published by Bild. «Yes, it’s true: we are facing the greatest transformation in the history of the automobile, other manufacturers must also fight,». «It’s a fact – he continues -: we produce at too high a cost» but «we have clear plans on how to optimize the costs of the products, materials and the factory. If everyone gives their contribution we will quickly reach the goal: we will return to the top.”
Who is Daniela Cavallo
Daniela Cavallo is a high-level executive within Volkswagen AG, one of the world’s largest automakers. Since May 2021, she has become chairman of the Volkswagen works council, taking over from Bernd Osterloh. His position is of great importance since the works council represents the interests of workers within the company, and has a fundamental role in the company’s decision-making process, influencing industrial strategies and union negotiations.
Cavallo has Calabrian origins and grew up in Germany and joined Volkswagen in the 1990s, starting her career in an apprenticeship with the company. Over the years he has held various roles within the company, gaining experience in human resources and industrial relations management. She is known for her pragmatic approach and her ability to mediate between workers and management, always seeking a balance between innovation and protection of workers’ rights.
His leadership has also focused on issues such as the transition to electric mobility, technological innovation and environmental sustainability, strategic issues for Volkswagen’s future.