Stay updated with the latest - Click here to follow us on Instagram
© IE Online Media Services Pvt Ltd
Tags:
Journalism of Courage
The Germany based automobile manufacturer Volkswagen is planning to shutter its factories in the country as it is grappling with profit margin due to increased competition from its Asian competitors.
According to a New York Times report, Volkswagen’s consideration to shut down factories in Germany would be the first in the 87 years history and it will also break the decades old promise of a job security for workers.
The automobile major said that the situation remains “tense” and a simple cost-cutting measure won’t suffice the need of the hour.
“In the current situation, even plant closures at vehicle production and component sites can no longer be ruled out without swift countermeasures,” the company said in a statement.
Volkswagen also added, “The situation is extremely tense and cannot be resolved through simple cost-cutting measures.”
One of the powerful automobile workers’ unions, IG Metall, has stated that it will oppose any kind of job cuts in the factories by Volkswagen.
Taking a stance on the situation, Oliver Blume, chief executive officer of Volkswagen said “The European automotive industry is in a very demanding and serious situation.”
Blume, as quoted by New York Times, further added, “Germany in particular as a manufacturing location is falling further behind in terms of competitiveness. In this environment, we as a company must now act decisively.”
The company has been losing ground in Europe with decrease in demand, especially for the electric segment and its sales numbers have been consistently plunging.
The automaker is the owner of 10 established brands, including Škoda, Seat, Cupra, Audi, Lamborghini, Bentley, Porsche and Ducati.
Stay updated with the latest - Click here to follow us on Instagram
