Volkswagen announced a restructuring plan to cut up to 100,000 jobs. The proposal includes closing four German manufacturing plants. The company also intends to spin off its core brand and parts operations.
Contracting margins and electric-vehicle transition challenges drove the overhaul. Rising competition and significant cost pressures necessitated the changes.
The German state of Lower Saxony holds a legal veto over plant closures. The IG Metall union threatened severe industrial action and crippling strikes across the manufacturing base.
These developments create profound uncertainty for Volkswagen and its largest shareholder, Porsche SE. Observers describe the escalating conflict as an existential labor war.