Why is VW shutting down in Germany?
The auto maker’s top employee representative told workers that management planned to shutter three German factories to cut costs amid slumping sales. Melissa Eddy covers Volkswagen and German business from Berlin. 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.Amongst the three largest auto manufacturing groups based in Germany, Volkswagen Group produced the most revenue from worldwide operations in 2024 with nearly 325 billion euros generated.
Is VW closing 3 factories in Germany?
VW was considering closing up to three factories in Germany and had been calling on its workforce to accept a 10% pay cut. At the time, the union was calling for a 7% increase. While the deal will also see a reduction in production capacity across its plants, it was celebrated by union leaders. The car industry is rarely out of the news, often under gloomy headlines related to tariffs, falling sales, low uptake of electric vehicles (EVs) and workers’ strikes. While the crisis in the sector affects all global brands, German companies have been especially badly hit.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?The primary causes of Volkswagen’s current difficulties include high production costs in Germany (especially labour and energy costs), low productivity, and the brand’s dependence on the Chinese market.Volkswagen is grappling with mounting financial troubles, signalling a worsening situation in its global manufacturing operations. With two profit warnings in three months, the automotive giant faces falling EV sales, factory underutilisation, and tariff threats from China.
What is VW called in Germany?
Volkswagen (VW; German pronunciation: [ˈfolksˌvaːɡn̩]) is a German automobile manufacturer based in Wolfsburg, Lower Saxony, Germany. The Volkswagen Law, passed in July 1960, changed the company to a joint stock corporation, with 20 percent held each by Germany and Lower Saxony, the region in which Volkswagen is still headquartered.Because of this, you may be wondering who owns Volkswagen. Volkswagen is owned and managed by Volkswagen Aktiengesellschaft, or Volkswagen AG. In English, they might be referred to simply as the Volkswagen Group.It is part of the Volkswagen Group. The name Audi is based on a Latin translation of the surname of the founder August Horch, itself the German word for “listen! Audi is headquartered in Ingolstadt, Germany.
Is Volkswagen closing in India?
Amid rumours of Volkswagen leaving India, Ashish Gupta, Brand Director, Volkswagen India, recently confirmed that these are mere rumours and the brand has no intention to exit the Indian market. In a media briefing, Saurabh Vatsa, Managing Director of Nissan Motor India, clarified that the company has no intentions of exiting the Indian market or scaling back its manufacturing presence in the country.