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Massive strike at Volkswagen as thousands of workers protest pay cuts and job losses

Nine factories across Germany grind to a halt in largest walkout since 2018

Thousands of Volkswagen workers across nine German factories, including the automaker’s EV-only plant in Zwickau, walked off the job Monday morning in a massive strike protesting pay cuts, job losses, and potential factory closures. The walkouts, led by the IG Metall union, have brought assembly lines to a standstill, marking the largest disruption to Volkswagen’s German operations in over five years.

Union vows escalation amid stalled negotiations

The IG Metall union, representing 120,000 Volkswagen workers, has warned of potential 24-hour strikes or even more severe actions if their demands are not met. “Volkswagen has set our collective bargaining agreements on fire,” said IG Metall’s chief negotiator, Thorsten Groeger, adding, “This could become the toughest wage dispute Volkswagen has ever seen.”

The union’s demands follow Volkswagen’s plans to cut pay by 10%, lay off thousands of workers, and potentially close at least three factories in Germany. The automaker has cited financial struggles, including declining sales in China and mounting competition from Chinese EV makers, as reasons for its drastic cost-cutting measures.

WOLFSBURG, GERMANY – SEPTEMBER 07: Volkswagen cars stand on elevator platforms inside one of the twin towers used as storage at the Autostadt promotional facility next to the Volkswagen factory on September 07, 2023 in Wolfsburg, Germany. Volkswagen announced recently that it is temporarily cutting some shifts and lowering production at Wolfsburg and other plants due to a lack of critical engine components. Flooding in Slovenia disrupted production at gear rings manufacturer KLS Ljubno, which supplies Volkswagen and other European automobile factories. Electric car production is not affected. (Photo by Stuart Franklin/Getty Images)

Strike impacts key production sites

Monday’s strikes include walkouts at Volkswagen’s Wolfsburg headquarters and other major sites, including Hanover, Salzgitter, Brunswick, and Emden. Demonstrations are also planned at the Zwickau EV-only plant, with strikes at this facility expected to extend into Tuesday.

Volkswagen’s restructuring efforts come as it battles to stay competitive in a rapidly evolving automotive market. The company is under pressure to streamline production, shorten development cycles, and rethink its EV retail model.

Historic significance and broader context

OSNABRUECK, GERMANY – NOVEMBER 06: Volkswagen workers gather to march during a warning strike outside the Volkswagen factory on November 06, 2024 in Osnabrueck, Germany. IG Metall, the labor union representing workers in the metal and electrical sectors, is leading strikes nationwide in an effort to add pressure on employers during ongoing negotiations over pay and working conditions. The strikes are occurring as Germany is struggling with a near-stagnant economy. Volkswagen, in an effort to restore profitability in the face of a stark decline in global sales of its cars, is considering closing the Osnabrueck plant. (Photo by Hesham Elsherif/Getty Images)

This is the largest strike at Volkswagen’s German operations since 2018 when 50,000 workers protested pay disputes. It follows similar unrest in late October when Volkswagen announced plans to close its Audi plant in Brussels, triggering major rallies in Belgium.

Volkswagen’s struggles are tied to a steep decline in sales in its core Chinese market and growing competition from Chinese automakers like BYD, which are also expanding into Europe. The company is navigating a delicate balance of cutting costs while maintaining its position in the global automotive industry.

As the strikes continue, all eyes remain on Volkswagen’s response at the bargaining table and whether the automaker can resolve one of its most significant labor disputes in recent history.

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