As Ford Authority reported in early September, Ford partner and rival Volkswagen Group is facing its fair share of financial struggles at the moment, which may prompt it to close at least one of its German plants as part of some severe cost-cutting measures. Just a few days ago, another report surfaced that indicated VW may ultimately close multiple plants in Germany, however, and is also looking to reduce wages, news that comes from the works council that represents employees at those plants. Now, one of those VW plants seems even more likely to close.
According to Automotive News, VW has rejected offers from 26 investors and interested parties looking to purchase its Audi plant in Brussels, which currently only builds the all-electric Q8 e-tron. Audi Chief Operating Officer Gerd Walker noted that none of those parties offered the company a “viable and sustainable concept” for the plant, and VW hasn’t been able to come up with an alternative use for it, either. If the Brussels plant closes, the 3,000 or so workers there now stand to lose their jobs.
Ultimately, VW’s financial woes could reportedly result in the closure of three plants in Germany, while the automaker also intends to downsize several others as part of a handful of cost-cutting measures. On top of that, VW reportedly presented the works council with plans to reduce wages by 10 percent across the board, and initiate wage freezes in 2025 and 2026. Additionally, workers are facing the potential loss of bonus and anniversary payouts. Layoffs could reportedly reach totals in the tens of thousands, too.
Ford has faced similar issues in Europe, where it has closed, sold or repurposed multiple plants in recent years. That includes the Saarlouis Assembly plant in Germany, where Ford Focus production is slated to end next year as the automaker has struggled to find a buyer for the facility, though it will reportedly remain open until 2032, regardless.
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