Lies criticizes VW group leadership: Wirtschaftswoche reports on possible closure of multiple plants

The SPD politician, who is a member of the VW supervisory board, also warned against simple solutions. One must not "look for solutions by taking the supposedly 'easy measures,' namely laying off employees or closing sites." Rather, Volkswagen must "be competitive and technologically leading, and we must also be able to secure and win back markets."

Reactions from Saxony

The reports about the cost-cutting plans had previously surfaced in Wirtschaftswoche and on ZDF. As Wirtschaftswoche reported, citing VW insiders, in addition to the main plant in Wolfsburg, the sites in Zwickau, Emden, Hanover, and Neckarsulm could be affected by closures. ZDF stock market expert Frank Bethmann explained the background of the reported cost-cutting measures.

A VW spokesperson stated that the company does not comment on internal, confidential documents. According to information from Wirtschaftswoche, the VW supervisory board is to discuss the matter on 9 July. As the report further stated, VW is planning to cut more than 80,000 jobs worldwide, including thousands in Germany. Manager Magazin had previously already reported a figure of 100,000 jobs to be cut.

Politics in Saxony reacted with sharp criticism. The mayor of Zwickau, Constance Arndt (Bürger für Zwickau), and the district administrator of the Zwickau district, Carsten Michaelis (CDU), demanded in a joint statement a clear commitment from Volkswagen to the Zwickau site. "The people in our region need clarity about the future," said Arndt and Michaelis. The renewed media reports "rightly unsettle our workforce and our site regions" and "attacks on the VW Act, codetermination, and our sites are irresponsible threats," it continued.

Saxony's Economics Minister Dirk Panter (SPD) announced that he would attend a works meeting at VW in Zwickau on Monday afternoon. He told MDR SACHSEN that he would "fight for every single job in Zwickau." The Zwickau site is "the most productive and innovative VW site" and must not "fall victim to any across-the-board cuts." Regarding the plans, which are so far only known in excerpts, Panter said: "I cannot now comment in detail on a paper that we do not know in detail."

Explosiveness for the Zwickau site

IG Metall and the VW works council reacted with indignation and announced resistance. "Should such plans be pushed forward, we would prevent them with all our might," a joint statement said. IG Metall chairwoman Christiane Benner and works council chief Daniela Cavallo made clear that the employee side would put massive pressure on the group's board at the upcoming summit meeting on 9 July.

The IG Metall district leadership criticized in particular the spokespeople on the supervisory board who had made employment commitments in the past. Minister-President Michael Kretschmer (CDU) had also stated in the autumn that the VW plant in Zwickau would remain in operation in the coming years. He referred in this context to commitments from both the board of management and the supervisory board.

Background: Crisis in the automotive industry

The Zwickau site had been converted to electric car production at the beginning of 2022 after investments of around 1.2 billion euros. Employees and regional politicians see the site as a flagship of industrial transformation in eastern Germany. All the more serious, from their perspective, is the fact that, according to media reports, this very site is now on the list of possible closures. VW has already been active on the Chinese market for years and has models developed and produced locally with local partners. Against this backdrop, Lies had already spoken out for some time in favor of bringing parts of production back to Germany.

Lies also emphasized that in Europe one must protect industry "so that it can withstand competition from China." That money can be made with electric cars is something the group must first adjust to: "The times when you make money with electric cars are still to come," he said with reference to "the most popular electric car there is in Europe" and the "fantastic combustion-engine or hybrid vehicles" built in this country. The task, he said, is to strengthen Europe as an industrial location without letting the market be "put under pressure" by Chinese competition.