Volkswagen has said it is considering closing factories in Germany for the first time in history, a move with big political implications.
, it is considering closing some factories in Germany for the first time in its 87-year history, a move that risks a feud with unions. If it decides to do so, it will expose the deep woes roiling Europe’s. After years of ignoring overcapacity and slumping competitiveness, the German auto giant’s moves are likely to kick off a broader reckoning in the industry. The reasons are clear — Europe’s efforts to compete with Chinese rivals and Tesla in electric cars are faltering.
Thorsten Gröger, a lead negotiator for the IG Metall union at Volkswagen, said it was an “irresponsible plan that shakes the foundations of Volkswagen and poses a massive threat to jobs and sites. This course is not only shortsighted, but highly dangerous. It risks destroying the heart of Volkswagen.” He promised the union would fight vigorously to protect the jobs of its members.
Pushed by a slowdown in the pace of EV adoption, Renault CEO Luca de Meo — a former Fiat and VW executive — has advocated for an alliance that would pool assets across Europe. The plan would be similar to the way Airbus was created to make European aircraft manufacturers competitive with Boeing. But timing for such strategic initiatives looks to be running short.
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