Why is VW shutting down?
Volkswagen could shut down as many as three factories in Germany and lay off tens of thousands of workers as it seeks to regain its edge in Europe amid slumping sales and increased competition from China, the company’s top employee representative said Monday. Historic moment for Volkswagen: Automaker plans to close ‘at least’ 3 German plants and cut thousands of jobs. Volkswagen employees gather to hear from the automaker’s works council at the company’s headquarters in Wolfsburg, Germany on October 28, 2024.Volkswagen, Europe’s biggest carmaker, is in the midst of a severe sales and cost crisis that it says requires plant closures and layoffs. Talks to rescue VW have started, but could Germany’s car policy prevented this?
Is VW in Germany in trouble?
Volkswagen, Europe’s biggest carmaker, is in the midst of a severe sales and cost crisis that it says requires plant closures and layoffs. Talks to rescue VW have started, but could Germany’s car policy prevented this? As a result, the Volkswagen Group now expects an operating return on sales in the range of 2 to 3% in the 2025 financial year (previously: 4 to 5%). The Volkswagen Group now expects net cash flow in the Automotive division to be around €0 billion (previously: €1 to 3 billion).Volkswagen Group, one of the world’s largest car manufacturers, is facing a serious financial crisis. According to information from the German newspaper Bild, the company lacks about 11 billion euros, which are needed to ensure its smooth operation and vital investments next year.
What does “VW” stand for in VW USA?
The group’s largest market is China, which accounts for 40% of its sales and profits. The name Volkswagen derives from the German words Volk and Wagen, meaning ‘people’s car’. VW, for a long time, didn’t build what the majority of the US market wanted. An US car needs space, power, shouldn’t be too complex (what Americans call “over engineered”) and difficult to repair – and the most sold vehicles in the US are actually Pick Up trucks.In full-year 2024, Volkswagen of America increased sales in the USA with the Tiguan, Atlas, and Jetta the top-selling VW car models in the US. January to December): Volkswagen of America gained market share in the USA, with VW sales increasing by over 15%.
What is the VW scandal in the US?
The volkswagen emissions scandal (“dieselgate”) is a controversy surrounding the german-based automobile manufacturer volkswagen. Since 2008, volkswagen sold automobiles in the united states and other countries. The emissions testing done on these cars was artificially manipulated to meet environmental standards. The volkswagen emissions scandal, sometimes known as dieselgate or emissionsgate, began in september 2015, when the united states environmental protection agency (epa) issued a notice of violation of the clean air act to german automaker volkswagen group.In September 2015, the EPA announced that Volkswagen had violated the Clean Air Act by installing unlawful software into their diesel vehicles. Regulators in multiple countries began to investigate the automaker, and its stock price fell in value by a third in the days immediately after the news.