Volkswagen cuts production at German plant amid uncertainty
The move reflects uncertainty over the German plant’s long-term role in Volkswagen’s operations
Volkswagen has planned to reduce its production at the German plant due to uncertainity.
The German car manufacturing company's spokesperson said on Tuesday it will pare back production of the open-top T-roc Cabrio SUV at its plant in Osnabrueck.
The news came by alarming employee representatives who have urged management to secure the plant's future.
Production of the compact SUV, a niche model in Volkswagen's portfolio, is scheduled to continue at Osnabrueck until next year, with no plan for the site beyond that.
As reported by Reuters, Volkswagen informed, it is in advanced talks with defence companies to find another use for the factory.
A company spokesperson said that a holiday closure would be extended by one week and that there would be additional production-free days
The decision was linked to seasonal demand patterns for convertibles, more popular in the Northern Hemisphere spring and early summer, with demand typically declining in the second half of the year
A spokesperson for the Volkswagen general works council said the move only added to uncertainty for site's 2,300 workers
The "precarious situation" amounted to a de-facto four-day week for Osnabrueck, according to the works council spokesperson.
Volkswagen is slowing down output at a German factory because it’s not sure what the future of that site will look like.
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