'A declaration of bankruptcy': Unions lash out as Volkswagen weighs possible German plant closures

Volkswagen's management went toe-to-toe with workers on Wednesday, outlining the need to take "joint responsibility" in a bid to turn things around at the crisis-stricken German automotive giant.

The showdown comes shortly after the carmaker flagged it was no longer able to rule out closing plants in its home country of Germany — a measure that was previously considered off the table.

Pictures carried by Getty Images showed employees protesting at the townhall about the potential plans for the business, waving union flags and banners with slogans saying that management mistakes were not their fault and urging leaders to "finally do your job," according to a CNBC translation.

Oliver Blume, CEO of Volkswagen Group, said on Wednesday that the current situation at the company "affects us all emotionally, including me personally."

Blume said the automotive industry had "changed massively" in recent years.

"Together, we will implement appropriate measures to become more profitable. We are leading VW back to where the brand belongs — that is the responsibility of all of us," he added.

"We have been spending more money at the brand than we earn for some time now. That doesn't go well in the long term," Arno Antlitz, chief financial officer and chief operating officer of Volkswagen Group, told employees, according to comments shared by Volkswagen.

Annual vehicle sales in Europe have gone down compared to the period before the Covid-19 pandemic and are set to stay lower against that baseline, Antlitz explained. He said he expects around 2 million fewer cars to be sold every year in the future in the European market, compared to the pre-pandemic period.

Antlitz estimates that Volkswagen holds around a quarter of the European market