Volkswagen Group's plan to streamline its operations by reducing the number of models by half has been rejected by unions. The plan, which was presented to the company's supervisory board, did not include any mention of factory closures or job cuts. However, the unions, which hold significant power in the company, were not convinced by the proposal.
The rejection of the plan is a significant setback for VW Group, which is struggling with eroding market share in China and North America, as well as costly tariffs. The company's profit margins have evaporated, and it is under pressure to cut costs and improve efficiency.
The unions' resistance to the plan is not surprising, given their history of fighting against redundancies. In 2024, VW Group and its unions spent months negotiating a plan to cut 35,000 jobs by 2030, and it is likely that any further attempts to reduce the workforce will be met with similar resistance.
