Volkswagen, Europe's top carmaker, is considering closing factories in Germany for the first time due to pressure from cheap Asian competition. This move signifies a major clash between Chief Executive Oliver Blume and unions that have substantial influence at VW.
IG Metall, Germany's most powerful union, has thwarted management attempts to make changes, and analysts have identified potential closure targets. Volkswagen, with around 680,000 employees, is also ending its job security program to streamline spending and save 10 billion euros by 2026.
Volkswagen's stock value has declined over the past years, making it the worst-performing stock among major European carmakers. The company's market share in China is shrinking, and new competitors in Europe are adding pressure to develop cheaper electric vehicles.
The decision to close factories is seen as a wake-up call for Germany's economic policies. The economy ministry emphasized the need for responsible action in a challenging market environment, while IG Metall expressed concerns about the impact on Volkswagen and its workforce.
Chief Financial Officer Arno Antlitz and VW brand chief Thomas Schaefer will address staff in a meeting, with CEO Blume expected to join negotiations. The company's future plans and decisions will have significant implications for the financial market and the automotive industry as a whole.
Stay tuned for more updates on Volkswagen's strategic moves and their effects on global markets!
