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width="100"/><source type="image/jpeg" srcset="https://static.dw.com/image/70801319_800.jpg 50w, https://static.dw.com/image/70801319_801.jpg 129w, https://static.dw.com/image/70801319_802.jpg 352w, https://static.dw.com/image/70801319_803.jpg 575w" media="(min-width: 0px) and (max-width: 575px)" height="100" width="100"/><source type="image/jpeg" srcset="https://static.dw.com/image/70801319_600.jpg 78w, https://static.dw.com/image/70801319_601.jpg 201w, https://static.dw.com/image/70801319_602.jpg 379w, https://static.dw.com/image/70801319_603.jpg 545w, https://static.dw.com/image/70801319_604.jpg 767w, https://static.dw.com/image/70801319_605.jpg 1199w" media="(min-width: 576px) and (max-width: 991px)" height="56.25" width="100"/><source type="image/jpeg" srcset="https://static.dw.com/image/70801319_1000.jpg 80w, https://static.dw.com/image/70801319_1001.jpg 576w, https://static.dw.com/image/70801319_1002.jpg 768w, https://static.dw.com/image/70801319_1003.jpg 992w, https://static.dw.com/image/70801319_1004.jpg 1200w" media="(min-width: 992px) " height="43.75" width="100"/><img fetchpriority="high" src srcset="https://static.dw.com/image/70801319_600.jpg 78w, https://static.dw.com/image/70801319_601.jpg 201w, https://static.dw.com/image/70801319_602.jpg 379w, https://static.dw.com/image/70801319_603.jpg 545w, https://static.dw.com/image/70801319_604.jpg 767w, https://static.dw.com/image/70801319_605.jpg 1199w" width="100" height="56.25" title="A Volkswagen ID.7" alt="A Volkswagen ID.7"/></picture><figcaption class="c1oedowi t1b9cajp r1wgtjne wgx1hx2 b1ho1h07">Problems at the German automaker are seen as symbolic of Germany's wider economic woes<small class="copyright c19ed66t ihwmx5 iz19q57 icns9en t14k9lqz r1wgtjne wgx1hx2 b1ho1h07">Image: Moritz Frankenberg/dpa/picture alliance</small></figcaption></figure><span></span><div class="a1amioo0 cl16rh cl16rh rdrhdio hh5424a advertisement"><span class="label-top icns9en ixvat6c bmcvy6l wgx1hx2 b1ho1h07">Advertisement</span><div id="dw_m_article_top" class="gpt-slot"></div><div id="dw_t_article_top" class="gpt-slot"></div><div id="dw_d_article_top" class="gpt-slot"></div></div><div class="cc0m0op s1ebneao rich-text t1it8i9i r1wgtjne wgx1hx2 b1ho1h07"><p>Workers with labor union IG Metall took an extraordinary step on Wednesday, offering to take pay cuts in order to avoid mass lay-offs and plant closures planned by German carmaker <a class="internal-link" href="/en/volkswagens-crisis/t-17448835">Volkswagen</a>.</p> <p>Ahead of the next round of collective bargaining talks, the union and the VW workers' council offered to reduce labor costs by €1.5 billion ($1.6 billion). In exchange, employees were seeking guarantees on job security and the future of the company's nine factories across Germany.</p> <p>If their demands aren't met, the union has indicated that a major strike could be imminent.</p> <p>"Because sustainable solutions are needed, we are now going on the offensive and presenting a solution concept," said workers' council chairwoman Daniela Cavallo. "It is a counter-model to the board of management's plan to cut jobs, which prevents the future instead of creating it."</p> <p>Cavallo also suggested that upper management waive their bonuses to alleviate the company's <a class="internal-link" href="/en/volkswagen-vw-crisis-failure-of-german-car-policy-v2/a-70644183">dire financial straits</a>.</p><div class="vjs-wrapper embed big"><h2 aria-label="Embedded video — German automaker Volkswagen faces unprecedented crisis" class="headline"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 20 20"><g fill-rule="evenodd"><path d="M14.114 7.599H13.5l.002 4.706h.601l4.582 3.25-.005-11.11zM11.084 4.444l-9.007.002-1.336.797.002 9.514 1.334.793 9.007.006 1.509-.799-.004-9.516z" /></g></svg>German automaker Volkswagen faces unprecedented crisis</h2><video id="video-70622843" controls playsInline="" preload="none" poster="data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=" data-id="70622843" data-posterurl="https://static.dw.com/image/70641777_605.webp" data-duration="01:47"><source src="https://hlsvod.dw.com/i/dwtv_video/flv/je/je20241028_WIVW19A_,AVC_480x270,AVC_512x288,AVC_640x360,AVC_960x540,AVC_1280x720,AVC_1920x1080,.mp4.csmil/master.m3u8" type="application/x-mpegURL"><source src="https://tvdownloaddw-a.akamaihd.net/dwtv_video/flv/je/je20241028_WIVW19A_AVC_1920x1080.mp4" type="video/mp4"><track src="https://www.dw.com/media/subtitles/70754074" srclang="en" label="ENGLISH" default><p class="vjs-no-js">To view this video please enable JavaScript, and consider upgrading to a web browser that <a href="https://videojs.com/html5-video-support/" target="_blank">supports HTML5 video</a></p></video></div> <h2>Why is Volkswagen struggling?</h2> <p>In September, the German auto giant announced that it would close three plants as part of widespread cost-cutting measures and nix a longstanding, generous pension plan.</p> <p>Labor groups have vowed to meet sweeping lay-offs with mass resistance. </p> <p>Since 2019, German car companies have shed about 46,000 jobs amid a shift to producing more <a class="internal-link" href="/en/electric-vehicles/t-18951760">electric vehicles</a>. Competition from cheaper Chinese EVs and a general <a class="internal-link" href="/en/no-recession-but-little-relief-for-german-economy/a-70649494">economic malaise</a> in Germany has further hurt the auto industry.</p> <p>In October, Volkswagen announced a 64% profit slump and its decision to <a class="internal-link" href="/en/vw-crisis-german-carmaker-to-scrap-three-plants-and-thousands-of-jobs/a-70425198">close three plants</a>, <a class="internal-link" href="/en/volkswagen-and-workers-clash-over-layoffs-as-profits-plummet/a-70638262">prompting an outcry from workers.</a></p> <p>The company says it intends to cut some €18 billion from its budget.</p> <p>es/sms (dpa, Reuters)</p> </div><footer class="s1jc41xr"><div class="feedback"><div class="sp605kw center"><div role="button" tabindex="0" id="feedback-button" data-focusdelay="600" class="hh5424a s1uzn49a s1y9040i m7i2pic e3w9kkf t1ax1i04 sx4rgdt ih9bob8 seipclg wgx1hx2 b1ho1h07">Send us your feedback<svg viewBox="0 0 20 20" 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Workers have promised to meet this plan with mass resistance.","priority":"HIGH","contentDate":"2024-11-20T12:53:04.877Z","localizedContentDateSr":"November 20, 2024","localizedFirstPublicationDate":"11/20/2024","localizedFirstPublicationDateSr":"November 20, 2024","contentDateMode":"LAST_PUBLICATION_DATE","personAssociations":[],"legacyAuthor":"","thematicFocusCategory":{"name":"Business","correspondingContent":{"namedUrl":"/en/business/s-1431","__typename":"Navigation"},"__typename":"Category"},"firstRegionArray":[{"alignedName":"Germany","correspondingContent":{"namedUrl":"/en/germany/s-1432","__typename":"Navigation"},"__typename":"GeographicRegion"}],"kicker":"","isOpinion":false,"firstPersonArray":[],"genre":"NEWS","opinionSeries":[],"text":"\u003cp>Workers with labor union IG Metall took an extraordinary step on Wednesday, offering to take pay cuts in order to avoid mass lay-offs and plant closures planned by German carmaker \u003ca class=\"internal-link\" href=\"/en/volkswagens-crisis/t-17448835\">Volkswagen\u003c/a>.\u003c/p>\n\n\u003cp>Ahead of the next round of collective bargaining talks, the union and the VW workers' council offered to reduce labor costs by €1.5 billion ($1.6 billion). In exchange, employees were seeking guarantees on job security and the future of the company's nine factories across Germany.\u003c/p>\n\n\u003cp>If their demands aren't met, the union has indicated that a major strike could be imminent.\u003c/p>\n\n\u003cp>\"Because sustainable solutions are needed, we are now going on the offensive and presenting a solution concept,\" said workers' council chairwoman Daniela Cavallo. \"It is a counter-model to the board of management's plan to cut jobs, which prevents the future instead of creating it.\"\u003c/p>\n\n\u003cp>Cavallo also suggested that upper management waive their bonuses to alleviate the company's \u003ca class=\"internal-link\" href=\"/en/volkswagen-vw-crisis-failure-of-german-car-policy-v2/a-70644183\">dire financial straits\u003c/a>.\u003c/p>\u003cdiv class=\"vjs-wrapper embed big\">\u003ch2 aria-label=\"Embedded video — German automaker Volkswagen faces unprecedented crisis\" class=\"headline\">\u003csvg xmlns=\"http://www.w3.org/2000/svg\" viewBox=\"0 0 20 20\">\u003cg fill-rule=\"evenodd\">\u003cpath d=\"M14.114 7.599H13.5l.002 4.706h.601l4.582 3.25-.005-11.11zM11.084 4.444l-9.007.002-1.336.797.002 9.514 1.334.793 9.007.006 1.509-.799-.004-9.516z\" />\u003c/g>\u003c/svg>German automaker Volkswagen faces unprecedented crisis\u003c/h2>\u003cvideo id=\"video-70622843\" controls playsInline=\"\" preload=\"none\" poster=\"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=\" data-id=\"70622843\" data-posterurl=\"https://static.dw.com/image/70641777_605.webp\" data-duration=\"01:47\">\u003csource src=\"https://hlsvod.dw.com/i/dwtv_video/flv/je/je20241028_WIVW19A_,AVC_480x270,AVC_512x288,AVC_640x360,AVC_960x540,AVC_1280x720,AVC_1920x1080,.mp4.csmil/master.m3u8\" type=\"application/x-mpegURL\">\u003csource src=\"https://tvdownloaddw-a.akamaihd.net/dwtv_video/flv/je/je20241028_WIVW19A_AVC_1920x1080.mp4\" type=\"video/mp4\">\u003ctrack src=\"https://www.dw.com/media/subtitles/70754074\" srclang=\"en\" label=\"ENGLISH\" default>\u003cp class=\"vjs-no-js\">To view this video please enable JavaScript, and consider upgrading to a web browser that \u003ca href=\"https://videojs.com/html5-video-support/\" target=\"_blank\">supports HTML5 video\u003c/a>\u003c/p>\u003c/video>\u003c/div>\n\n\u003ch2>Why is Volkswagen struggling?\u003c/h2>\n\n\u003cp>In September, the German auto giant announced that it would close three plants as part of widespread cost-cutting measures and nix a longstanding, generous pension plan.\u003c/p>\n\n\u003cp>Labor groups have vowed to meet sweeping lay-offs with mass resistance. \u003c/p>\n\n\u003cp>Since 2019, German car companies have shed about 46,000 jobs amid a shift to producing more \u003ca class=\"internal-link\" href=\"/en/electric-vehicles/t-18951760\">electric vehicles\u003c/a>. Competition from cheaper Chinese EVs and a general \u003ca class=\"internal-link\" href=\"/en/no-recession-but-little-relief-for-german-economy/a-70649494\">economic malaise\u003c/a> in Germany has further hurt the auto industry.\u003c/p>\n\n\u003cp>In October, Volkswagen announced a 64% profit slump and its decision to \u003ca class=\"internal-link\" href=\"/en/vw-crisis-german-carmaker-to-scrap-three-plants-and-thousands-of-jobs/a-70425198\">close three plants\u003c/a>, \u003ca class=\"internal-link\" href=\"/en/volkswagen-and-workers-clash-over-layoffs-as-profits-plummet/a-70638262\">prompting an outcry from workers.\u003c/a>\u003c/p>\n\n\u003cp>The company says it intends to cut some €18 billion from its budget.\u003c/p>\n\n\u003cp>es/sms (dpa, Reuters)\u003c/p>\n","contentLinks":[{"targetId":70638262,"isInText":true,"__typename":"ContentLink","targetType":"ARTICLE","name":"Volkswagen and workers clash over layoffs as profits plummet","description":"A trade union is demanding that VW hold discussions over management plans for plant closures and mass layoffs. 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