VW scraps three-decades-old German jobs guarantee to cut costs

Volkswagen AG is making changes to job protections for auto workers in Germany in an effort to cut costs. This move has sparked a conflict with unions in the country’s crucial automotive industry. The company is considering closing factories in Germany due to declining car sales and the need to stay competitive. This decision reflects the challenges faced by European carmakers in the EV market and competition from companies like Tesla and BYD. Volkswagen’s efforts to reduce costs are complicated by the influence of labor representatives on its supervisory board and the state of Lower Saxony, a major shareholder. Employee representatives are resisting these changes, vowing to protect jobs.