Union warns of 'conflict' as Volkswagen eyes mass job cuts

Employees of German car maker Volkswagen (VW) wave flags and display banners as they take part in a rally called by German trade union IG Metall to protest against restructuring and mass job cut plans at the VW plant in Zwickau, eastern Germany on July 9, 2026.(AFP)

Volkswagen (VW) workers staged protests nationwide on July 9 as unions warned of a "major conflict" if the struggling German car giant pushes ahead with what could be the global auto industry's biggest restructuring.

Europe's largest carmaker has come under intense pressure from U.S. tariffs, slimmer profit margins from electric cars and above all intense competition in China.

Thousands of job cuts have already been announced, but reports say CEO Oliver Blume is now weighing ramping these up to 100,000 as well as potentially closing four factories in Germany. As VW's bosses presented their planned overhaul to the 10-brand group's supervisory board, workers staged protests outside plants and unions warned they were ready to step up industrial action.