Volkswagen to close three plants in Germany, cut salaries

Volkswagen Group announced plans to close three plants in Germany and cut salaries in order to save costs amidst the ongoing economic and supply chain crises.

The struggling auto giant is set to close its factories in Hanover, Osnabrück, and Emden, resulting in the loss of thousands of jobs.

Volkswagen has been hit hard by the global semiconductor chip shortage and the war in Ukraine, which have disrupted production and led to a decline in sales.

The company is also facing increasing competition from electric vehicle makers such as Tesla and BYD, and is under pressure to reduce its costs in order to remain competitive.

The planned plant closures and salary cuts are part of Volkswagen's broader restructuring plan, which is aimed at saving the company €5 billion ($5.2 billion) per year.

The closures will affect around 12,000 employees, who will be offered severance packages and assistance with finding new jobs.

Volkswagen has said that the plant closures are necessary in order to secure the company's future and ensure its long-term competitiveness.

The company is expected to announce further details of its restructuring plan in the coming weeks.