Volkswagen might consider shutting down facilities and reducing its workforce.
The automotive market in Europe is facing an "extra tough and significant predicament," according to Volkswagen CEO Oliver Blume. Particularly, Germany, serving as a manufacturing hub, has seen a decline in competitiveness. Amidst this tough climate, Volkswagen has to adapt. From the board's standpoint, the brands under Volkswagen AG require a comprehensive overhaul. "Even shutting down vehicle manufacturing and parts facilities might be inevitable in the present situation without immediate counteractions."
The initially planned job reductions via early retirement and voluntary separations aren't sufficient to meet the savings goals. "Considering the circumstances, the company is forced to withdraw the employment security promise that has been in place since 1994."
In light of the automotive industry's challenges, Volkswagen is considering the potential necessity of closing down some vehicle manufacturing and parts facilities. Amidst this tough climate in the European market, the Manufacture of motor vehicles under Volkswagen AG requires drastic changes to remain competitive.
