Unrest grows in Saxony over potential VW Zwickau plant closure

Discontent is mounting in Saxony regarding the potential closure of the Volkswagen plant in Zwickau. Minister-President Michael Kretschmer of the CDU party stated that VW must fulfill its commitments to the Zwickau workforce. He emphasized that employees should be able to rely on prior assurances, especially since the Zwickau plant was designated as a lead factory for electromobility.

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As they reached the cost targets, the discussion comes up whether to close this plant. You cannot work together trustfully like that, and that has nothing to do with market economics.

Kretschmer criticized VW's approach, noting that after employees met cost-saving targets, the company began discussing plant closures. He argued this undermines trust and is contrary to market economics. "This company must return to the path of virtue, otherwise it has no chance with consumers. Trust is the most important currency of all," Kretschmer stated in an interview with Deutschlandfunk.

He further compared Volkswagen's complex and costly structures to a state-run conglomerate from the former East Germany (GDR), suggesting that its convoluted organization leads to inefficiency and reduced innovation. Kretschmer acknowledged that VW CEO Oliver Blume rightly points out these issues.

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This company must return to the path of virtue, otherwise it has no chance with consumers. Trust is the most important currency of all.

The Saxon SPD party also voiced strong criticism of VW's leadership. SPD leader Henning Homann described the plans by CEO Oliver Blume as irresponsible. "If the only vision of a German top manager is to close plants in Germany to relocate production to cheaper locations, then he is perhaps not a top manager, but a mismanager," Homann declared.

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If the only vision of a German top manager is to close plants in Germany to relocate production to cheaper locations, then he is perhaps not a top manager, but a mismanager.

Following a supervisory board meeting on Thursday, VW provided no specific details regarding potential plant closures or job cuts. However, the Zwickau site, along with Hannover, Emden, and Neckarsulm, has been repeatedly mentioned in discussions about cost-saving measures. The IG Metall union has expressed concern over the lack of a clear denial from VW and has announced further protests, vowing significant resistance if management proceeds with closure plans for Zwickau.

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The protests this week were just the beginning if the management in Wolfsburg actually wants to shut down the plant in Zwickau.