Volkswagen considers closing a plant in Germany to reduce costs
Volkswagen is considering closing one of its plants in Germany to reduce costs. This would be the first time in the company's history. The decision is motivated by the need to cut ten billion euros in costs by 2026 and to rationalise spending to support the transition to electric cars. Germany is losing ground in terms of competitiveness as a production location and the difficult economic climate is bringing German companies to their knees
3' min read
3' min read
One more certainty is wobbling for Germany: Volkswagen, the iconic German industrial giant, made it known on 2 September that it could no longer rule out closing plants in the country. This would be the first time in the 87-year history of the company. A shock, which the case places one day after another historic turning point: the victory of the ultra-right-wing Alternative für Deutschland in one Land, Thuringia. There is one thing in common: the prolonged economic crisis of the German locomotive, which swells the consensus of populist parties to the detriment of the government coalition and brings its most representative companies to their knees.
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Cut 10 billion
.Volkswagen is to cut ten billion euros in costs by 2026. The group is planning to close a large car factory and a component production plant, which it considers obsolete. Also under consideration is the breaking of the pact made back in 1994 with the trade unions to freeze redundancies until 2029.
'The economic climate has become even more difficult and new players are entering Europe,' Managing Director Oliver Blume said in a statement. "Germany as a production location is losing ground in terms of competitiveness. This is also a kind of vote of no confidence in the government led by Chancellor Olaf Scholz .
The Volkswagen brand, which fuels the majority of the carmaker's sales, is the first in the group to undergo a cost-cutting exercise in an attempt to rationalise spending to support the transition to electric cars.
