Volkswagen considers closing 3 factories to maintain competitiveness with Chinese electric cars

Amid falling demand in the Chinese and European markets, Volkswagen plans to close at least three factories in Germany to maintain its competitiveness with Chinese electric vehicles.

Ms. Daniela Cavallo, head of the Volkswagen workers' council, speaks on October 28 in front of hundreds of employees in Wolfsburg (Germany) - Photo: AFP

Volkswagen's workers' council leader said Europe's largest carmaker is planning to close at least three factories in Germany, laying off tens of thousands of employees, as well as scaling back operations at remaining plants.

According to Reuters, Volkswagen has been in talks with unions for weeks over a business restructuring and cost-cutting plan, including closing factories in Germany for the first time.

"The management is absolutely serious about all this. This is not just a threat," Daniela Cavallo, head of Volkswagen's workers' council, said on October 28 in front of hundreds of employees in Wolfsburg.

According to Ms. Cavallo, this is a plan by Germany's largest industrial group to sell off its operations right at home.

Ms Cavallo did not specify which Volkswagen plants in Germany would be affected, or how many of the Volkswagen Group's 300,000 employees in the country would be laid off.

Volkswagen is under intense pressure to cut costs and stay competitive as demand in China and Europe falls, sparking conflict between its workers and management.

The troubles of Europe's top carmaker have also added to pressure on the German government to act in the face of the country's economic weakness.

In that context, Ms. Cavallo said Berlin urgently needs to come up with a master plan for German industry to ensure it does not "go downhill".

She said Volkswagen and many other car manufacturers in Europe are facing many problems, such as a slower-than-expected transition to electric vehicles, as well as fierce competition from Chinese car manufacturers in this market.

Source: https://tuoitre.vn/volkswagen-tinh-dong-cua-3-nha-may-de-duy-tri-kha-nang-canh-tranh-voi-xe-dien-trung-quoc-20241028193819022.htm