Union chairwoman Daniela Cavallo stated that these plans are far more extensive than previously known, and threatened management with strikes. Volkswagen has just launched two new models under the revived Scout brand in the U.S., with plans to invest approximately $2 billion in building a new plant in South Carolina. This move aims to drive success in the North American market, generating positive sentiment. However, the situation is entirely different domestically in Germany.

The union revealed that Volkswagen's management plans to shut down up to three plants, scale back all other facilities, and divest core areas. Additionally, management has demanded that remaining employees accept significant pay cuts of up to 20%. These measures affect not only workers in Wolfsburg and Emden but also smaller plants such as Osnabrück and Dresden's Transparent Factory. Union chairwoman Cavallo warned, "All German Volkswagen plants are impacted by these plans—none are safe!" The backdrop of these austerity measures is Volkswagen's poor expected performance in Q3 2024. The company has already terminated job security guarantees and threatened to close plants in Germany. The union emphasized that these actions would not only lead to massive job losses but also severely impact local economies.

Cavallo accused the board of lacking a clear offensive strategy, having no vision for future product lines, and "not knowing how to regain technological leadership." She argued that Volkswagen's underperformance in the Chinese market has weakened its global competitiveness. Industry insiders estimate it will take Volkswagen five years to regain competitiveness against Asian manufacturers. Negotiations between the union and management have grown exceptionally tense. The next round of talks is scheduled for this Wednesday, with the union issuing a "historic declaration of war," threatening to break off negotiations and initiate strikes. Cavallo stated, "If employees fear for their livelihoods, they must take action."

Volkswagen Group also downgraded its 2024 forecast in its upcoming Q3 report. Deliveries are expected to fall short of last year's 9.2 million units, and the sales return rate will drop from the original 6.5%–7.0% to 5.6%. Porsche's Q3 performance was similarly weak, with a profit margin of just 10.7%, far below its mid-term target.