Hanover, Germany (dpa) -German carmaker Volkswagen intends to step up the pace of its core brand's ongoing cost-cutting programme, brand chief Thomas Schäfer said at a staff meeting in Wolfsburg on Monday.
"We have absolutely no time to lose and will therefore significantly ramp up our performance programme once again," Schäfer said, as employees in the German car industry held protests nationwide to call on management to secure jobs.
The Volkswagen Group, Europe's largest carmaker, recently warned that a further 50,000 jobs could be cut worldwide, around half of which would hit Germany.
At the core VW brand, an agreement was reached at the end of 2024 to reduce overcapacity at German sites, lower labour costs and bring development costs down to a competitive level.
Schäfer said around 16,300 redundancies have been finalized in Germany, with a total of just under 28,800 agreed upon by 2030, close to the target of 35,000. He called the developments "good progress," but warned that the measures are insufficient.
Daniela Cavallo, the chair of the Volkswagen works council, expects the cost-cutting efforts to become even more severe.
"At the workplace level, the company's cost-cutting frenzy will hit us from all sides in the coming weeks. Even more so than is already the case, I fear," said Cavallo, according to reports from participants at the works council meeting.
A storm is gathering, she said. "And it won't be a minor one."
She questioned whether the group's planned large-scale job cuts can be implemented in a socially responsible manner.
This would not be achieved through partial retirement schemes and voluntary redundancy agreements alone, she said, warning against redundancies.
An employment protection scheme at VW is reportedly valid until the end of 2030. It is said to be non-terminable.
Cavallo conceded that things could not continue as they are, admitting that the bulk of the company's profitability is gone as Europe's automotive industry undergoes a massive restructuring.
"Manufacturers with a long history will fall by the wayside. Others will have to merge. And yet others will have to form alliances they would never have considered in the past," she said.
The question is not whether new burdens will fall on employees, but simply how to distribute them fairly and prevent the situation from becoming unfairly disadvantageous to the workforce.
The Volkswagen Group recently revised down its profit forecast, citing write-downs running into the billions at subsidiary Porsche, problems in China and higher demand for electric cars - which are less profitable than comparable combustion-engine models.
According to Martin Sander, head of brand sales, electric cars are in high demand, particularly in Germany and Europe - among others due to high fuel prices, improved charging infrastructure and affordable entry-level models.
At the same time, demand for combustion-engine cars is declining. This marks an important turning point.
"We are responding flexibly to this changed market situation and adjusting our production programmes at the plants accordingly," said Sander.
Sources told dpa that planned extra shifts are being cancelled at the main plant in Wolfsburg, where the Tiguan and Golf combustion-engine models are built.
In plants geared towards electric mobility, such as Emden, production is to be ramped up.
175,000 rally across Germany
Earlier on Monday, the powerful IG Metall union said around 175,000 employees took part in rallies at 280 locations, including in key automotive hubs like Stuttgart, Wolfsburg, Ingolstadt and Munich.
"Just like here at Volkswagen, workers in the automotive and supply industries are gathering all over the country today to show employers and politicians that they've had enough," IG Metall head Christiane Benner said at a rally at VW headquarters in Wolfsburg.
"Things are going up in flames everywhere at the moment," she added.
Media representatives were denied access to the site during the protest, as ordered by management last week, according to the Volkswagen works council and IG Metall.
Germany's carmakers have long been under pressure due to increasing Chinese competition, while also struggling with high energy prices, US tariffs and waning demand at home.
Beyond Volkswagen, brands like Mercedes and BMW, as well as key suppliers, including Bosch, are also planning to reduce tens of thousands of jobs.
The trade union leader said that workers expect executives to take responsibility for Germany as an automotive nation, for employees and for jobs.
Benner called on politicians to provide reliable conditions for investment, affordable energy and support to boost production in the EU.