Volkswagen is considering the possibility of closing its factories in Germany and reducing its workforce due to increasing financial difficulties. An internal memo reveals that production costs are putting significant pressure on the company’s profits, leading to “particularly significant challenges.” Volkswagen does not rule out the closure of its German factories.
This decision has caused concern among unions and government officials, as such measures were previously unconsidered. Volkswagen’s CEO, Oliver Blume, stated that “the economic situation has become even more complex,” with new competitors entering the European market.
Volkswagen had already announced a cost-cutting plan of 10 billion euros and planned job reductions. However, August’s results showed a drop in profits, necessitating additional measures.
