Categories: Stock Market News

Volkswagen plant closures ‘not the appropriate approach’, Germany’s Scholz says


FRANKFURT (Reuters) – Manufacturing facility shutdowns could be a unsuitable transfer by Volkswagen (ETR:VOWG_p), German Chancellor Olaf Scholz mentioned, including that Europe’s largest carmaker had a accountability to its staff.

Volkswagen is in a bitter dispute with workers over pay cuts and doable plant closures aimed toward countering excessive prices in Germany and massively cheaper Asian rivals coming into Europe.

Either side go right into a fourth spherical of negotiations on Monday.

“Particular selections shall be negotiated between the house owners and labour representatives. My opinion is evident: closing areas wouldn’t be the appropriate solution to go,” Scholz informed the Funke Media Group.

“It will not be proper as a result of poor administration selections have contributed to the troublesome scenario,” he added.

The state of Decrease Saxony is Volkswagen’s second-largest shareholder, and its state premier, like Scholz, has urged the group to keep away from web site closures.

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