I’m in wburg Germany standing outside of Volkswagen’s main Factory where I just heard labor leader Daniela cavalo speak to hundreds of workers about what management has planned in terms of Cost Cuts for its main brand according to labor leaders Volkswagen management intends to close at least three factories get rid of thousands of jobs and close several departments and divisions within the company that’s in addition to the desire to cut wages cross the brand by 10% and to get rid of pay raises over the next 2 years Volkswagen brand CEO Thomas Schaefer issued a statement after cavalo’s speech he says that Volkswagen’s profitability is really in Decline and something needs to be done he says that factory costs are about 25 to 50% higher than what management needs them to be and that Volkswagen brand in general their costs are about double as much as their competition looking ahead we know that Volkswagen labor and Volkswagen management are due to come together on Wednesday for the official start of the second round of negotiations what will be decided is still unclear