Crisis in the German car industry: Volkswagen lays off and cuts production
Volkswagen, Europe's largest carmaker, is facing inevitable changes that include the closure of several plants in Germany, the reduction of thousands of employees and the restructuring of other production sites. The measures announced by Volkswagen's management come in response to rising costs, falling demand and fierce competition, particularly from Asia. In addition, the move raises questions about the future of German industry and calls on the government to find ways to boost economic growth.
Volkswagen $VWA.BR has been in talks with unions for several weeks about sweeping measures to restructure its production in Germany, one of its key markets. Daniela Cavallo, chairwoman of Volkswagen's works council, said thecompany plans to close at least three plants in Germany and further cut production at other factories, putting thousands of jobs at risk. Cavallo stressed that the move cannot be seen as a negotiating tactic - it is a genuine plan to hedge the company against falling demand…
So it's gonna be tough. Diess tried to change course a few years ago, and now it's clear that his dismissal has only exacerbated the problems. The reasons for his dismissal are well covered here:
https://fullycharged.show/blog/why-volkswagen-sacked-herbert-diess/
And while I don't entirely agree, and think the role of the Porsche Piech familly's possible collusion with the unions could have been more significant, I do agree with the key phrase:
Volkswagen will continue to fail, not because it is incapable of developing good technology, but because the company proved with the firing of Herbert Diess that it is incapable of fundamental change
I have to agree. 🤷♂️