Hard times for theGerman economythe case of the Volkswagen is the clear demonstration of this. The famous car manufacturer is in fact considering the closing one of its plants in Germany to cut costs. A decision that would be historic, as it would be the first time in the company’s history. But the need seems urgent: the Teutonic giant must reduce costs by 10 billion euros by 2026 and rationalize expenses to support the transition to electric cars. Although the failure of plug-in vehicles is one of the main problems, but we’ll get to that later.
The crisis in Germany is a major problem. The country is losing a lot of ground in terms of competitiveness as a production site and, as highlighted by Il Sole 24 Ore, the economic climate is also causing major damage to the most important national companies. Volkswagen is one of the points of reference in Berlin and on the day of Afd’s triumph in Thuringia, the news of the possible closure of plants could perhaps shake up those who think exclusively about the risk of a resurgence of Nazism rather than finding solutions to the critical economic issues.
The way to cut the 10 billion euros by 2026 could be the closure of a large car factory and a component production plant, both considered obsolete and outdated. But that’s not all. Volkswagen’s top management is also said to be working to evaluate the breaking of the pact signed thirty years ago with the unions to freeze layoffs until 2029. The company’s CEO Oliver Blume he didn’t mince his words, the economic climate has become even more difficult and new operators are entering Europe.
The data is there for all to see. Volkswagen has lost almost a third of its value in Bag over the past five years. The electric disaster has eroded market share in China, where local producers dominate. But some are worried about the possible repercussions on the rest of the country. “If such an industrial heavyweight has to close factories, it could be the long-overdue wake-up call that Germany’s economic policy measures need to be significantly strengthened,” the peremptory analysis by Carsten Brzeski of Ing Research. “The situation is extremely tense and cannot be solved with simple cost-cutting measures,” he added Thomas SchaferCEO of the Volkswagen brand: “For this reason, we want to start a discussion with employee representatives as soon as possible to explore the possibilities for a sustainable restructuring of the brand.”
And we come back to the electric. The green dossier is one of the negative chapters of Volkswagen, it’s no mystery. The sale of plug-in cars in Europe continues to slow down and the burden on the accounts of the manufacturers is being felt. Hence the decision of the German group to reduce the operating return target on sales for the entire year of the group and the Car Business Area to 6.5-7% from the previous 7-7.5%. The numbers speak for themselves: in the first six months of 2024, sales of the electric model Q8 e-tron decreased worldwide by 8.2%. But not only that. Among the hypotheses is the closure of an Audi electric car factory in Brussels, with 2,600 jobs at risk by 2,600. The sector is in serious difficulty and we know the reasons: the high costs, the difficulties in recharging and the natural resistance to change. These are obvious things for those with common sense, but not for the green Taliban…
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