Volkswagen (VW) CEO Oliver Blume has revealed that the company\u2019s\ncurrent condition is \u2018more than critical\u2019, amid global automotive\nindustry pressures, competition from Chinese manufacturers, and the\nthreat of closing several plants.<\/p>\n
The statement was made by Blume ahead of a meeting with Volkswagen\nworkers at several company facilities in Germany. In that meeting, he\nwill explain the company\u2019s cost-saving and restructuring plans.<\/p>\n
Blume said Volkswagen and the German automotive industry are facing\nthe greatest change in their history due to various global pressures and\ncompetition from Chinese producers.<\/p>\n
\u2018The situation we are facing now is more than critical,\u2019 said Blume\nin an interview published on the company\u2019s internal network.<\/p>\n
According to him, Volkswagen\u2019s current profit levels are not yet\nsufficient to ensure the company has long-term resources to develop\ntechnology, new products, or maintain its production locations.<\/p>\n
Volkswagen is considering large-scale workforce reductions. However,\nBlume stressed that no final decision has been made regarding plant\nclosures.<\/p>\n
Nevertheless, he said the company has not yet seen a way for several\nplants to remain profitable in the 2030s. The plants in question are\nlocated in Emden, Hannover, Zwickau, and Neckarsulm.<\/p>\n
\u2018We currently cannot see a way for the plants in Emden, Hannover,\nZwickau and Neckarsulm to remain profitable in the 2030s,\u2019 he\nexplained.<\/p>\n
Blume said plant closures would be a last resort. Therefore,\nVolkswagen is still seeking alternative uses for facilities whose\nproduction may be halted. One of these is the plant in Osnabrueck - the\ncompany is said to be in advanced talks with several companies from the\ndefence industry to find an alternative function for the facility.<\/p>\n
In addition to potential plant closures, Volkswagen is also facing\nthe problem of excess production capacity in Europe. Blume estimates\nthere is excess production capacity of up to around 500,000 vehicles per\nyear.<\/p>\n
Pressure on Volkswagen does not only come from competition with\nChinese manufacturers. Blume also highlighted US tariffs, the war in the\nMiddle East, and regulatory burdens as challenges that are increasingly\nweighing on the company\u2019s condition.<\/p>\n
When asked whether the automotive industry situation will improve,\nBlume instead warned that global risks could potentially worsen. \u2018On the\ncontrary, we must assume that risks will worsen throughout the world,\u2019\nhe concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/more-than-critical-volkswagen-faces-factory-closures-1787622641", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }