Volkswagen Weighs First-Ever German Factory Closures in 87-Year History to Save Billions

Sep 2, 2024, 02:40 PM

Volkswagen is considering unprecedented factory closures in Germany as part of a cost-cutting initiative aimed at saving billions of euros. This move marks the first time in the company's 87-year history that it might shut down major production facilities in its home country. The closures could affect at least one larger vehicle manufacturing plant and one component factory. The decision is driven by the need to address rising costs, a slowdown in consumer spending, and increased competition, particularly from China. This development poses a significant challenge to Chancellor Olaf Scholz's government and risks a confrontation with labor unions over job security, as Volkswagen plans to end its long-standing employment protection agreement.