Volkswagen Warns of German Plant Closures, End to Job Security Scheme

VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. REUTERS/Jonathan Ernst
VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. REUTERS/Jonathan Ernst
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Volkswagen Warns of German Plant Closures, End to Job Security Scheme

VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. REUTERS/Jonathan Ernst
VW logo badge is seen on display at the North American International Auto Show in Detroit, Michigan, US, January 16, 2018. REUTERS/Jonathan Ernst

Volkswagen said on Monday it can no longer rule out plant closures in Germany as it seeks ways to save several billion euros at its namesake brand in a cost-cutting drive.

The carmaker considers one large vehicle plant and one component factory in Germany to be obsolete, its works council said, vowing "fierce resistance" to the executive board's plans.

Volkswagen said that it also felt forced to end its job security programme, which has been in place since 1994 and which prevents job cuts until 2029, adding all measures would be discussed with the works council, according to Reuters.

"The situation is extremely tense and cannot be overcome by simple cost-cutting measures," VW brand chief Thomas Schaefer said in a written statement.

The Volkswagen brand, which fuels most of the automaker's unit sales, is the first of the group's brands to undergo a cost-cutting drive targeting 10 billion euros ($11.07 billion) in savings by 2026 as it attempts to streamline spending to survive the transition to electric cars.

A difficult economic environment, new competitors in Europe, and the falling competitiveness of the German economy meant the carmaker needed to do more, Volkswagen Group Chief Executive Oliver Blume said in a statement to its management.



EU Says Trump Arrival Will Not Impact Big Tech Cases

The logos of mobile apps, Google, Amazon, Facebook, Apple and Netflix, are displayed on a screen in this illustration picture taken December 3, 2019. REUTERS/Regis Duvignau/File Photo
The logos of mobile apps, Google, Amazon, Facebook, Apple and Netflix, are displayed on a screen in this illustration picture taken December 3, 2019. REUTERS/Regis Duvignau/File Photo
TT

EU Says Trump Arrival Will Not Impact Big Tech Cases

The logos of mobile apps, Google, Amazon, Facebook, Apple and Netflix, are displayed on a screen in this illustration picture taken December 3, 2019. REUTERS/Regis Duvignau/File Photo
The logos of mobile apps, Google, Amazon, Facebook, Apple and Netflix, are displayed on a screen in this illustration picture taken December 3, 2019. REUTERS/Regis Duvignau/File Photo

The European Commission said on Tuesday it was assessing its cases against Apple, Google and Meta and that President-elect Donald Trump's impending arrival in the White House did not affect its commitment to enforcing its laws on big tech.

The European Commission has carried out a series of investigations into US tech firms under its Digital Markets Act and Digital Services Act, which seek to make large platforms adhere to market rules and act against illegal content, according to Reuters.

Meta chief Mark Zuckerberg said Europe was "institutionalizing censorship".

"We have been very clear that no matter which administration is in place in third countries, this will not affect our enforcement work," a Commission spokesperson told the EU's executive's daily briefing.

The Financial Times reported that the European Commission was reassessing its investigations of Apple, Meta and Google in a review that could lead it to scale back or change its investigations that could lead to fines as US groups urge Trump to intervene.

The Commission denied it was carrying out a review.

"What we do have is upcoming meetings to assess maturity of cases, to assess the allocation of resources and the general readiness of the investigation," the spokesperson said.

The spokesperson said that the cases were still being handled at a technical level and so not reached a point at which decisions could be taken.

"Obviously there may be a political reality which puts pressure on the technical work, but we need to distinguish the two stages because we need to have a court-proof investigation," another spokesperson said.