Enter the dragon: Under pressure from Chinese EV makers Volkswagen may close plants in Germany for the first time in history
Volkswagen is currently weighing all its options around Germany as there is a constant pressure from Chinese EV makers who have forced plants in Germany to close down, due to the increasing competition from the South Asian country. The economic environment has ended up in major crisis and as new competitors are entering the European market, things are getting much tougher for Volkswagen in order to maintain its logistics and manufacturing hub in the country, and still manage to upkeep its profits and other relevant costs.
Germany falling behind
Germany's Volkswagen plants are severely falling behind due to the massive competition from other brands, mainly from the Chinese markets, according to industry experts. The lackluster performance in China is Volkswagen's leading examples of a major international fallout, as per CNN. Volkswagen's cost-cutting plans may face severe backlash from the workers of the multiple plans located in Germany and a few labor protection firms have blamed the firm's management for these issues crippling the current auto industry.
Volkswagen's current workforce situation
Volkswagen is currently in a major workforce crisis situation as the plants are on the verge of closing down. However, it still hosts 683,000 workers worldwide, including some 295,000 in Germany, and all of them could be affected to some extent when these plants are planned upon closing down. Volkswagen could begin initiating talks with employee representatives in order to find a diligent solution around the labor workforce at VW. Moreover, the company has committed to Germany as a business location, suggest reports from CNN.
