The serious financial situation that the German Volkswagen is going through could lead to an unusual decision, for the first time in the 87 years of the brand: the closure of plants in the country.

Affected by the increase in competition from Chinese electric car manufacturers, Volkswagen “is evaluating closing factories in Germany for the first time” according to a statement issued this Monday, September 2.

The German car manufacturer, one of the largest in the world, has indicated that other measures to “protect the company in the future include trying to end an employment protection agreement with unions, which has been in force since 1994.”

Oliver Blume, president and CEO of the Volkswagen Group, stated that the economic environment is difficult, marked by the prominence of new competitors in the European market.

The reality is that Germany, a manufacturing center, is increasingly behind in terms of competitiveness. On the other hand, the company now focuses on cost reduction in areas such as “factory expenses, supply chain and labor.”

Volkswagen’s workforce is around 683,000 worldwide, including around 295,000 in Germany. Volkswagen Passenger Car CEO Thomas Schaefer recently stated that the company will soon begin talks with employee representatives “to explore the possibilities of sustainable restructuring of the brand.”

M.Pino

Source: cnnespanol

(Reference image source: Erik Mclean in Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Volkswagen studies plant closures in Germany apareció primero en Bitfinance.