Austerity measures at VW - Saxony between worry and resistance

There was talk of a shock wave when the VW Group announced a tightening of its austerity measures at the beginning of the week. Plant closures in Germany are also under discussion. Saxony was also caught up in the wave. With the large e-car plant in Zwickau, the engine plant in Chemnitz and the Transparent Factory in Dresden, there are three sites in the Free State. In addition, many suppliers depend on Volkswagen. VW employee representatives are being combative and have announced "loud" staff meetings.

An extraordinary staff meeting is planned at the Zwickau plant on Thursday. VW brand boss Thomas Schäfer is expected to attend. He could be in for an uncomfortable reception in Saxony: Actions are planned, according to works council circles. "If the workforce doesn't speak up now, when will they?" The employees in Chemnitz are due to come together on September 9. On Wednesday, a works meeting in Wolfsburg was accompanied by fierce protests.

Europe's largest car manufacturer had announced on Monday that, in view of the worsening situation, it would once again tighten the austerity measures already implemented at the core VW brand. Plant closures in Germany and compulsory redundancies are no longer ruled out.

The extent to which Saxony will be affected by the cuts is still unclear. "All speculation is just speculation," said the works council in Zwickau. The statement by Group Works Council Chairwoman Daniela Cavallo that there will be no site closures with the employee representatives is "rock solid". Because of this "absolute unity on the side of co-determination" nationwide, the mood in Saxony is militant. According to the company, around 11,000 people work for VW in the Free State.

Volkswagen has sales problems. Demand for e-cars is also weakening. VW had invested one billion euros to convert Zwickau into a pure e-mobility site. The then German Chancellor Angela Merkel (CDU) attended the start of series production of the ID.3 in fall 2019.

However, the great success did not materialize. Since this summer, work in Zwickau has only been carried out in two shifts; night shifts are no longer necessary due to low demand. Temporary jobs have been cut. 360,000 vehicles could be built in Zwickau each year, compared to just 240,000 in 2023.

However, it is not only Volkswagen itself that has become anxious following the Board of Management's cost-cutting announcements; suppliers are also worried. Around 50,000 employees in south-west Saxony are dependent on the automotive industry, said Dirk Vogel from the AMZ industry network. This affects parts suppliers, but also service companies.

VW must now do its homework. In Vogel's opinion, the Chemnitz engine plant is unlikely to be a problem as it is working at full capacity. But e-mobility will also remain. Now it is a matter of organizing the next two to four years at the Zwickau plant in a sensible way, said Vogel. The suppliers would be at the car manufacturer's side.