VW mulls closing plants in Germany in cost cutting measures: Report

Volkswagen is mulling shutting down factories in Germany, in a first for the company, encapsulating the pressure the European carmaker is facing from cheap Asian competition, Reuters reported. 

In what is touted to be the first difference of opinion between the company's head Oliver Blume and unions that wield significant influence at VW, the newswire reported. 

VW consider a large plant and a component factory in Germany to be redundant, its works council noted, pledging 'fierce resistance' to the company's plans, Reuters further stated. 

Volkswagen has also said it feels the need to axe its job security programme, one that has been there since 1994, and aims to curb job cuts till 2029, noting that everything will be deliberated upon with the works council, the newswire further stated. 

VW is among the first brands to undergo a cost-cutting measure, as it aims to save 10 billion euros by 2026, in an attempt at streamlining expenditures as it moves towards electrification, Reuters reported. 

VW has given up a third of its stock market value over the past five years, making it the worst performing stock among the major European carmakers, the newswire reported.