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German Chancellor asks Volkswagen not to close factories

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German Chancellor Olaf Scholz asked the Volkswagen that no close factoriesalthough he recognized that it was up to the company owners and worker representatives to discuss the matter.

In an interview with the Funke media group published this Saturday (7), Scholz said that closing locations “would not be the right way”, as poor management decisions contributed to the difficult situation.

A member of the Social Democratic Party, the chancellor stated that, although it was the owners’ responsibility to negotiate specific decisions together with social partners, it is “always right to remind companies of their responsibility”.

READ MORE: Volkswagen CEO warns that urgent measures are needed to save the company

Banner saying ‘ready for strike’ is extended in protest by Volkswagen workers on Monday (2).

New wave of strikes

His comments come ahead of a second wave of warning strikes by Volkswagen workers at several German factories planned for this Monday (9). They are designed to pressure executives during stalled negotiations over how to reduce costs.

The automaker is pushing for unprecedented factory closures, thousands of layoffs and 10% pay cuts at its flagship brand, which is struggling with low demand in Europe and declining relevance in China, the world’s biggest auto market.

READ MORE: Volkswagen and Stellantis, leaders in Brazil, are experiencing a global crisis. What’s at stake?

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