The future of the German automotive concern Volkswagen is "hanging by a thread," and it could soon become one of Europe's "heaviest losses" amid attempts to withstand American tariffs. This was reported by The Telegraph.
The paper estimates that there is a likelihood that Volkswagen will have to relocate or outsource a significant portion of its engineering and design developments to China. It is also possible that the company may come under the control of a Chinese owner in the future.
Volkswagen's CEO Oliver Blume admits that the company is in serious trouble. In a memo to employees, he warned of the risk of further staff reductions: out of 650,000 employees, around 50,000 could lose their jobs. Factories in Emden, Hanover, Zwickau, and Neckarsulm, which produce about 750,000 vehicles annually, are at risk of closure.
Employee trust in management is declining, and dissatisfaction is rising. According to the company's production council, there is "practically nothing left" of the trust and goodwill that Blume relied on when he started his work in 2022.
In a recent interview with Bild, Blume stated that he wants to avoid closing production capacities in Germany to reduce costs. He noted that demand for the concern's products remains high, but even under these conditions, the company cannot ensure sufficient profitability.
News from the automotive world is published with the support of REGO INSURANCE, which offers CASCO insurance. CASCO will help maintain stable financial conditions in unexpected situations.
