Union leaders plan to inform workers at 11 German plants about the latest news negotiations with the company, which have not yielded any results so far. The grace period ends next month, and warning strikes at VW plants in Germany are possible from December 1.
Bloomberg notes that Monday’s protest will begin a controversial week for Europe’s largest carmaker. On Wednesday, Volkswagen will announce its results for the third quarter of this year. Unfortunately the news will not be good. The company is expected to show a decline in sales and profits.
CEO Oliver Blume highlighted high costs at branded company VW, which is struggling with falling demand in Europe and growing competition from BYD in China.
Employees pay for management’s mistakes
According to trade union activists, employees must pay for management mistakesincluding the industry’s failed transition from combustion engines to electric power and poor pricing policy.
The board “still has not presented a coherent concept of how it wants to lead Volkswagen into the future,” Daniela Cavallo, VW’s chief labor official, said in an internal bulletin seen by Bloomberg. She added that kmanagement does not want to rule out closing factories and reducing employment.
Difficult times for VW premium brands
In recent years, VW’s premium brands, including Audi and Porsche, have been the automaker’s biggest source of profit. Currently, this market segment is also struggling with problems. Porsche AG said on Friday that it is considering cost cuts and reviewing its model lineup after falling demand in China weighed on profits.