Hans Dieter Pötsch, chairman of the supervisory board, has indicated that the families behind Porsche SE support Volkswagen's management in pursuing necessary savings and restructuring efforts.

While no factories will be closed, Volkswagen plans to reduce production capacity by hundreds of thousands of units and cease limited operations at the 'Gläsernen Manufaktur' in Dresden.

Volkswagen is currently negotiating a deal aimed at keeping its factories in Germany operational while reinstating job security agreements through 2030.

Despite the challenges, Volkswagen has confirmed that no plant closures are currently planned, with significant investments earmarked for the modernization of facilities, particularly in Salzgitter for expanded battery cell production.

The automaker expects to achieve cost savings exceeding 4 billion euros annually through labor cost reductions and structural measures, including capacity cuts and lower development expenses.

In a show of solidarity, around 100,000 workers participated in short 'warning strikes' to pressure management ahead of the Christmas holiday.

Volkswagen is grappling with significant challenges, including the need to improve profitability amid declining demand and increased competition, all while facing political pressure to avoid plant closures and layoffs.

The company is responding to a global sales slowdown and rising competition, particularly from lower-priced Chinese manufacturers, which has prompted a need to align costs with competitors in Eastern Europe and South America.

Analysts have expressed skepticism regarding the adequacy of Volkswagen's planned job cuts, suggesting they may not sufficiently address stagnation in the European market.

The Emden plant will continue producing electric models, while other locations, including Osnabrück and Zwickau, will adapt their production lines to focus on electric vehicles.

A wage increase of 5.5% per year is set to be maintained until 2030, but payments will be redirected into 'personnel instruments' for socially responsible restructuring.

Employee anxiety is rising as negotiations continue, particularly at the Emden plant, which is facing a weak order situation.