VW Group and unions disagree on plan to streamline the automaker
Summary
VW Group plans to halve its model lineup while not explicitly detailing factory closures or job cuts. Reuters reported internal discussions about potential plant closures and large job cuts, though the plan publicly emphasizes a simpler lineup with reduced equipment options by up to 75 percent. Unions hold significant influence at VW, with half the supervisory board seats, and previously agreed to job cuts of 35,000 by 2030, with later talks pushing estimates higher; the new plan suggests fewer cars and less differentiation, potentially reducing labor needs even without explicit layoffs. The company emphasizes alignment of demand (about 9 million annual vehicles) with capacity (about 10 million, reduced by 2 million since COVID).