Automotive giants threatened with plant closures and massive layoffs

Teknologi Terkini - Posted on 26 September 2024 Reading time 5 minutes

DIGIVESTASI - Volkswagen, the German automotive giant, continues to be plagued by problems. After announcing plans to close factories and reduce thousands of employees, the company's board of directors is now facing pressure from workers. Volkswagen's CEO, Oliver Blume, is scheduled to hold talks with the head of the works council, Daniela Cavallo, on Wednesday (25/9/2024) in Hannover, to discuss the massive cost cuts needed to keep the company competitive.

 

Blume plans to secure a series of strategic measures this year to strengthen Volkswagen, which is currently facing the challenges of weak demand and a difficult transition to electric vehicles. However, Cavallo vowed to put up a “fierce fight” against the plan.

“I don't have to understand the technology in detail, but my job is to fight for the interests of the workers,” Cavallo said in an interview with *Die Zeit* newspaper.

 

Earlier, the plant closure plan was reported to include a number of production facilities in Germany, a step that has never been taken in Volkswagen's 87-year history. Blume, who has been CEO since 2022 replacing Herbert Diess, is considered a game-changer at Volkswagen. In an effort to overcome VW's difficulties in the global market, Blume has made strategic investments in Chinese company XPeng and American company Rivian, although the results of these projects still take time.

 

Meanwhile, Cavallo, the first woman to head VW's Works Council, began her career at the company after graduating from high school. She was elected to represent workers at VW subsidiary Auto 5000 in 2002.

 

Automotive industry expert Stefan Bratzel sees Cavallo and Blume as a good match to resolve the issue, and predicts their discussion will lead to a positive solution. “Cavallo is very firm in fighting for his employees' rights, and management should not underestimate him. He is also better suited to work with Blume than with Diess,” he said.


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Source: cnbcindonesia.com

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