Germany: Volkswagen Considers Closing Two Plants
The car giant is thinking about cutting costs on German soil for the first time
The Volkswagen Group needs to cut costs and is reportedly considering closing manufacturing plants in Germany for the first time in its 87-year history.
This is reported by Bloomberg, which explained that among the measures being studied by management is also the closing of a contract with employees aimed at keeping the jobs until 2029. VW’s profit margin is shrinking due to declining consumer purchasing power, pricing pressure from Chinese competition, and the troubled transition to electric mobility.
Among the hypotheses reported by international media are the closure of a car manufacturing plant and a parts plant.
“The economic situation has become even tougher, and new players are investing in Europe,” commented Volkswagen CEO Oliver Blume, as reported by Italian news agency ANSA. “Germany, as the headquarters of the corporation, is falling further and further behind in terms of competitiveness.”
According to Reuters, the brand’s chief financial officer Arno Antlitz and brand manager Thomas Schaefer will speak to employees during a production board meeting scheduled for September 4, deeming plants in Osnabrück, Lower Saxony, and Dresden, Saxony, as potential sites under threat.
The Volkswagen Group needs to cut costs and is reportedly considering closing manufacturing plants in Germany for the first time in its 87-year history.
This is reported by Bloomberg, which explained that among the measures being studied by management is also the closing of a contract with employees aimed at keeping the jobs until 2029. VW’s profit margin is shrinking due to declining consumer purchasing power, pricing pressure from Chinese competition, and the troubled transition to electric mobility.
Among the hypotheses reported by international media are the closure of a car manufacturing plant and a parts plant.
“The economic situation has become even tougher, and new players are investing in Europe,” commented Volkswagen CEO Oliver Blume, as reported by Italian news agency ANSA. “Germany, as the headquarters of the corporation, is falling further and further behind in terms of competitiveness.”
According to Reuters, the brand’s chief financial officer Arno Antlitz and brand manager Thomas Schaefer will speak to employees during a production board meeting scheduled for September 4, deeming plants in Osnabrück, Lower Saxony, and Dresden, Saxony, as potential sites under threat.
