Strikes Underway At Volkswagen Plants As Workers Revolt

Volkswagen workers across nine German plants launched two-hour strikes on Monday, signaling escalating tensions between labor unions and management at Europe’s largest carmaker.

The walkouts, which temporarily halted production, are part of a dispute over cost-cutting measures, including proposed wage reductions, as Volkswagen navigates challenges like weaker demand, rising production costs, competition from Chinese automakers, and a slower-than-anticipated transition to electric vehicles. The strikes targeted key production facilities, including the Wolfsburg plant, VW’s largest, which employs 70,000 people.

According to Reuters, several hundred vehicles, including the Golf, were left unbuilt during the two-hour stoppage, while workers at the EV-focused Zwickau plant plan to extend their strikes into Tuesday.

Volkswagen has warned of potential plant closures in Germany for the first time in its 87-year history as it looks to boost profitability amid financial pressures. Volkswagen is facing financial struggles thanks to declining deliveries, shrinking profits, and huge cash outflows including the Rivian joint venture, the launch of Scout, and getting Audi's Formula 1 project off the ground.

Volkswagen’s works council head, Daniela Cavallo, called for shared sacrifices, suggesting that major shareholders like Lower Saxony and the Porsche-Piëch families might need to reconsider their dividend policies.

Management has dismissed union proposals—including a plan to forgo bonuses in 2025 and 2026—as insufficient to address the company’s financial challenges. Union representatives at the Hanover plant criticized leadership for burdening employees with the consequences of executive missteps, such as the diesel emissions scandal, and strategic delays in China.

Become an AutoGuide insider. Get the latest from the automotive world first by subscribing to our newsletter here.