Volkswagen warns of possible plant closures in Germany

Volkswagen

Volkswagen can no longer rule out plant closures in Germany as it seeks ways to save an extra several billions of euros in a cost-cutting drive underway at its namesake brand, the carmaker and its works council said on Monday.

The carmaker considers one large vehicle plant and one component factory in Germany to be obsolete, according to the works council, which promised "fierce resistance" to the executive board's plans.

A statement from Volkswagen said that the carmaker also felt forced to end its job security programme in place since 1994, adding all measures would be discussed with the works council.