- Volkswagen intends to shut down its facility located beyond Lower Saxony.
According to auto analyst Ferdinand Dudenhöffer, it's unlikely that the Volkswagen Group can sidestep a factory shutdown within Germany. However, Dudenhöffer assures that this won't impact the Lower Saxony area. The state government, holding a 20% stake, and IG Metall union will make sure of that, as they'll safeguard Wolfsburg from significant modifications. On the contrary, facilities outside Volkswagen's main region, including Bremen, Kassel, and Zwickau, are particularly vulnerable.
Dudenhöffer asserts that Volkswagen's reluctant sales projections in Europe come partly from their own actions. The problem lies in their outdated lineup and unsolved software glitches. The market isn't as weak as Volkswagen management anticipated. Furthermore, other German automakers are flourishing more.
For years now, the primary brand hasn't made much profit, Dudenhöffer reveals. Instead, the group's profitability comes from Skoda, Porsche, and Audi, which have been keeping Volkswagen afloat. Another substantial income source, their robust China business, is currently facing rough sailing. "No more fat checks from China," Dudenhöffer laments.
Dudenhöffer pinpoints the major challenge – Volkswagen's overdependence on Wolfsburg. There are significant opportunities for other group subsidiaries to thrive in more advantageous circumstances, but Dudenhöffer expects no changes from the group.
Volkswagen revealed on Monday that they could consider a plant shutdown in Germany, along with possible job cuts due to operational concerns. This announcement triggered a firm rebuttal from the works council and IG Metall union. At a staff meeting in Wolfsburg, Volkswagen never unveiled new specifics about their cost-cutting strategy.
Due to Volkswagen's operational challenges, the manufacture of motor vehicles in some facilities outside their main region, such as Bremen, Kassel, and Zwickau, could be at risk. Despite Volkswagen Group potentially considering a plant shutdown in Germany, Dudenhöffer is skeptical that this will impact the Lower Saxony area where Wolfsburg is located due to the influence of the state government and IG Metall union.
