Volkswagen's supervisory board rejected the company's most radical job-cut plan on Thursday, providing short-term relief to the group's Spanish plants.
The board rejected Oliver Blume's plan that included up to 120,000 layoffs and possible factory closures in Germany. Instead, it approved a package of twelve initiatives that cuts the model range by up to 50% and production capacity to nine million vehicles per year.
Spanish unions ruled out immediate risks for the 23,000 employees at SEAT in Martorell and Volkswagen Navarra. The Martorell plant recently made 500 temporary workers permanent and plans further hires after the summer.
Matías Carnero of UGT warned that the situation could complicate the allocation of future electric models to Spanish plants. Rafa Guerrero of CCOO said the measures would not affect Spain in the short term, although the impact would depend on how the plan is implemented.
