Volkswagen Faces Reckoning Amid Cost-Cutting Proposals

Volkswagen management is set to confront a tense workforce at a headquarters meeting to discuss significant cost-cutting measures, including potential factory closures in Germany. Chief Financial Officer Arno Antlitz and VW brand chief Thomas Schaefer will present the plans, while Works council head Daniela Cavallo promises strong resistance.

Volkswagen management is bracing for a high-stakes meeting with its workforce this Wednesday, as it rolls out proposals for drastic cost-cutting measures including factory closures in Germany. The meeting, set in Volkswagen's Wolfsburg headquarters, aims to hit ambitious profit targets for the historic brand.

Chief Financial Officer Arno Antlitz and VW brand chief Thomas Schaefer will lay out the automaker's plans, while Works council head Daniela Cavallo, representing the workforce, vows to fiercely oppose any cuts. The discussions are expected to be emotionally charged and uncomfortable, lasting several hours.

Among the proposals on the table is the unprecedented move to close German factories and end long-standing job guarantees. This is part of a 10 billion euro cost-reduction effort, targeting a 6.5% profit margin by 2026. With union negotiations looming, the stakes are high for both management and labor representatives.

(With inputs from agencies.)