00:00German carmaker Volkswagen has unveiled its four-year strategy,
00:04which includes plans to cut in half the number of models it offers
00:07and reduce the number of model-specific variants by as much as 75%
00:12in an effort to cut costs and complexity.
00:15Europe's biggest carmakers under pressure from U.S. tariffs,
00:19weaker profit margins on electric vehicles,
00:21and above all, fierce competition in China, the world's largest car market.
00:27As the board met at Volkswagen's headquarters in Wolfsburg on Thursday,
00:31IG Metall, one of Germany's largest trade unions,
00:35organized coordinated protests across the country.
00:38One demonstration was held outside the headquarters,
00:42while further action took place at around 20 Volkswagen, Audi, Porsche, Mann, and Karyat production sites.
00:49Union representatives warned that management risked a major conflict with workers
00:54after it became increasingly clear that the company's cost-cutting initiative
00:58would also include major layoffs.
01:01The carmaker is reportedly considering cutting 100,000 jobs worldwide,
01:06representing more than 15% of its workforce.
01:09It also plans to close four plants in Germany,
01:12the Volkswagen factories in Hannover, Emden, and Zwickau,
01:16as well as Audi's site in Nackarsom.
01:19And while the company did not directly state that there would be job cuts,
01:23it did say that it plans to cut its vehicle production to around 9 million per year,
01:28down from 12 million.
01:29The German automotive giant already has a deal in place with worker unions struck in 2024,
01:35which agrees to up to 35,000 job cuts by 2030,
01:39but the new strategy may see the company go well beyond that.
01:42so let's go with it.
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