news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

recently, jefferies analysts said that volkswagen may force through the decision to close factories this year, paving the way for more than 15,000 layoffs.

citing comments from vw executives, jefferies said on monday the automaker could shut down production facilities without needing supervisory board approval, which could result in fourth-quarter provisions of up to 4 billion euros ($4.4 billion).

"unions should feel pressure to reach a new deal, and vw will be able to force layoffs," the analysts said in a note, citing comments made by vw during its north american roadshow. "but unions can only strike over wages, not over plant closures or layoffs if the latter are not protected by the contract."

earlier this month, the company scrapped 30-year-old job protections in germany after warning it might have to close factories there for the first time. the decision to end the job guarantee agreement set off a lengthy conflict between volkswagen and labor representatives. but the automaker's job cuts are harder to implement than elsewhere because half of its supervisory board seats are filled by labor representatives and the german state of lower saxony, which owns a 20% stake, often sides with the unions.

jefferies said vw is considering closing two to three plants and considering as many as five german factories. vw managers told analysts they have no backup plan if talks with unions on improving competitiveness fail.