The electrical disaster is undermining the stability of the automotive sector. The giants are struggling with dramatically declining revenues, which are compromising planned investments and in some cases pushing top management to make cuts and closures. One of the emblematic cases is provided by Volkswagenamong the difficulties visible to the naked eye of Audi, the factories are about to close and the stop at the Brussels site, a plant that has been much talked about in recent years due to its ecological nature (significant photovoltaic system, water recycling , renewable energy for the movement of goods, and so on). But Italy also risks paying the critical issues faced by the German multinational.
Confirmation of the risks faced by the Bel Paese came from the president of Anfia, Roberto Vavassorion the occasion of the annual meeting: “If, as reported by the press, Volkswagen decides to reduce its workforce by 15 thousand employees, they will at least 45 thousand employees will lose their jobs in supplier companieseven the Italian ones.” As highlighted by the expert, for every job lost by a manufacturer there are at least three others in the supply chain.
And i market data they speak clearly: “Asia, especially China, increases the number of vehicles produced by over 4 million, exceeding 30 million vehicles produced, while North America and Europe lose 1 million and 3.5 million vehicles respectively. Also in this case it is clear that the European production which was 18 million vehicles in 2019 will never be recovered and the now structural production overcapacity is a decisive issue for European manufacturers, who, in trying to maintain competitiveness against the Chinese advance, are followed by announcements of possible closures of European factories.”
Workers’ protests continue. Thousands of employees at nine Volkswagen plants have folded their arms against the austerity measures planned by the company and the mobilization is set to expand further. The company has plans job cuts and factory closuresas well as significant salary cuts. Volkswagen has denounced that costs at its production plant in Germany are too high compared to international standards, thus justifying cuts such as site closures as “inevitable”. The obsession with green cars has certainly played a role in this difficult situation, considering the huge investments and the flop on the market for vehicles on tap. With all due respect to the green fundamentalists.
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