Volkswagen considering first ever German factory closures to cut costs | DW News

German car giant Volkswagen has terminated a job security program and says it cannot rule out closures and redundancies amid a tough economic environment.

The company is reportedly looking to cut €4 billion ($4.25 billion) more than originally planned in a sweeping savings plan.

Workers' representatives have promised to fight the plans.

The board said that the current strategy of offering reduced contracts and severance packages to employees nearing retirement was no longer sufficient to meet the company's targets, and announced it was terminating a job security program which has been in place since 1994.

"The European automobile industry currently finds itself in a challenging and serious position," said Volkswagen chief executive Oliver Blume.

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[soci]

US single-handedly using Ukrine pulled down whole German economy 😢

[leibnizsuper]

Im a Chinese student studying in Germany. In fact most type cars of VW selling in china may be more cheaper than that selling in Germany. Not only EV, but also gas engine cars.

[maxprintscreen]

The party is over.. Chinese is coming up...😊

[emikomina]

Germany is in recession and VW is in decline

[MMT]

Wise move would be to buy Rivian or Lucid, they already have great ev technology that vw can use for all their brands. This would be quickest and cheapest way to success.

[wackychicken]

We need a non Chinese and non Elon Musk affiliated EV company

[DiegoMarquesBrazil]

VW has never closed a factory in Germany? The background shows a plant that seems pretty old!!

[mountainhunter]

Its not cost cutting 😂. They can't compete with chinese EVs.

[MAFS]

Poor leadership in Germany have brought a tough economic situation for the german industry. That's the price to pay.

[fwatban]

when a country rolled by puppets .. when their vision to serve their masters rather than their nation .. THIS IS THE RESULTS !!

[Gokudo]

so sanctions will bring Russia and China to their knees ?

🤣🤣🤣🤣🤣🤣🤣 Grizzle Grizzle

[BrandyHeng]

Nokia and Kodak failed, blame Russia
ICE cars failed, blame China's EV

[mathewabraham]

Change is the only constant. This is the reality. Germans are hesitant in Changing and you can see this with not just VW but also all other industries in Germany.

[keyvleon]

Automotive companies got complacent, fails to innovate because they got too comfy with their long established brand. Now panicking when disruptive tech and players come in with cheaper, higher quality products

[AnotherMartinez]

Anyone surprised? Have you seen the Audi offering of the past 5 years?

[harryzhang]

A typical business case. Germany has been enjoying too long for its dominance in car industries making them thinking it could last forever. The EV thing is not here over night. It has been developing over last 10 years at least. Germany could not blame anyone but itself.

[devamjani]

Imagine if germany had spent the money it spent on ukraine into helping its companies cope with the energy crisis, this could have been avoided.

[LG-thxt]

why is everyone persistently silent about vw's bankruptcy

[maxkick]

They not struggling. They ignored the transition.

[zackwang]

well well well, who would've thought that EU trade wars against Chinese EVs would backfire and end up shooting themselves in the foot. lol