According to Volkswagen’s workers’ council, the company plans to close three of its factories on German soil, laying off tens of thousands of workers. This development comes at a time when the German car industry as a whole is shaking.
In addition, Volkswagen is considering reducing the salaries of some of its employees by 10% and limiting the bonuses of senior executives.
The industry accounts for around 1.8 million jobs in total, 8% of annual economic output and 16% of Germany’s exports.
The big concern is China, electric cars and automated vehicles. A trademark of the country – Volkswagen in particular was a pioneer – but now lags behind in electric vehicles. It has lost technological leadership,
said Marcel Fratcher, president of the German Institute for Economic Research, a few days ago.
For VW to recover, it needs to save about 10 billion euros over the next three years, which could mean the loss of thousands of jobs and the possible closure of some assembly lines in Germany for the first time in history.
Source: www.autoblog.gr
