‘A very serious situation’: Volkswagen could close plants in Germany for the first time in history

[1srelluc]

https://www.cnn.com/2024/09/02/investing/volkswagen-factory-closure-germany/index.html

Volkswagen is weighing whether to close factories in Germany for the first time in its 87-year history as it moves to deepen cost cuts amid rising competition from China’s electric vehicle makers.

In a statement Monday, the German automaker, one of the world’s biggest car companies, said that it could not rule out plant closures its home country. Other measures to “future-proof” the company include trying to terminate an employment protection agreement with labor unions, which has been in place since 1994.

“The European automotive industry is in a very demanding and serious situation,” said Volkswagen Group CEO Oliver Blume. “The economic environment became even tougher, and new competitors are entering the European market. Germany in particular as a manufacturing location is falling further behind in terms of competitiveness.

Volkswagen, which embarked on a €10 billion ($11.1 billion) cost-cutting effort late last year, is losing market share in China, its single biggest market. In the first half of the year, deliveries to customers in that country slipped 7% on the same period in 2023. Group operating profit tumbled 11.4% to €10.1 billion ($11.2 billion).

The lackluster performance in China comes as the company loses out to local EV brands, notably BYD, which also pose an increasing threat to its business in Europe.




20% of the German economy is automotive. This will be unbelievably bad for them given their in-country parts sourcing.

Germany/Europe - Allow Chinese products to flood their country (for reasons, I'm sure).

Germany/Europe - Well, time to lay people off.

Also Germany/Europe - Hey wait a minute how come the "far right" are winning elections?

Meh, welcome to the 70s in the US, at least we got well-built Jap. rides.....The only down side was the bodies were made of recycled steel Black Label beer cans.

 

[shockedcanadian]

https://www.cnn.com/2024/09/02/investing/volkswagen-factory-closure-germany/index.html

Volkswagen is weighing whether to close factories in Germany for the first time in its 87-year history as it moves to deepen cost cuts amid rising competition from China’s electric vehicle makers.

In a statement Monday, the German automaker, one of the world’s biggest car companies, said that it could not rule out plant closures its home country. Other measures to “future-proof” the company include trying to terminate an employment protection agreement with labor unions, which has been in place since 1994.

“The European automotive industry is in a very demanding and serious situation,” said Volkswagen Group CEO Oliver Blume. “The economic environment became even tougher, and new competitors are entering the European market. Germany in particular as a manufacturing location is falling further behind in terms of competitiveness.

Volkswagen, which embarked on a €10 billion ($11.1 billion) cost-cutting effort late last year, is losing market share in China, its single biggest market. In the first half of the year, deliveries to customers in that country slipped 7% on the same period in 2023. Group operating profit tumbled 11.4% to €10.1 billion ($11.2 billion).

The lackluster performance in China comes as the company loses out to local EV brands, notably BYD, which also pose an increasing threat to its business in Europe.




20% of the German economy is automotive. This will be unbelievably bad for them given their in-country parts sourcing.

Germany/Europe - Allow Chinese products to flood their country (for reasons, I'm sure).

Germany/Europe - Well, time to lay people off.

Also Germany/Europe - Hey wait a minute how come the "far right" are winning elections?

Meh, welcome to the 70s in the US, at least we got well-built Jap. rides.....The only down side was the bodies were made of recycled steel Black Label beer cans.

As I've posted on here about the future of Germanies automobile industry many years before it actually occurred, "they are slow learners"

I figured this out by probably 2019 or so when I saw a Western born (British I believe), now China-Influencer on youtube who was showing some nice videos of a car convention in China. Thousands of attendees, dozens of Chinese manufacturers and I saw the copied bodies of German vehicles en mass.

They were sowing the seeds as they always do before they decide to target a particular market.

They have made their move today with flooding the marketplace with highly subsidized vehicles. The government happy to take a loss (or much lower margins) for a longer term goal of monopoly. As they have done with much of Western manufacturing sectors.

They will have already further secured Western buyin and the next generation with the endless promotion of climate change and the value of the EV so they will just do as they always do with their manufacturing (at first), focus on low prices due to their low wage workers. We've decreased our own Middle Class purchasing power to the extent that we are all basically forced to focus on price alone.

 

[zaangalewa]

Volkswagen? Who is Volkswagen?

 

[1srelluc]

Volkswagen? Who is Volkswagen?

You know, The People's Car.

 

[zaangalewa]

You know, The People's Car.

This German Tin Lizzy was never produced under the Nazis.

 

[JGalt]

Low-testosterone Germans have spent too much time wanking off to liberal gay porn.

So now they've lost their ability to be competitive.

 

[Polishprince]

The Volkswagen is known as Hitler's Revenge invented by Ferdy Porsche at his fuhrer's instruction.

I'm surprised that Big Labor would be interested in being involved with VW, considering the company's nazi roots and Big Labor's alleged opposition to Nazism.

 

[odanny]

About to go over 150K miles on my Rabbit, owned it since 30K, almost no issues over that entire time.

2008, made in Wolfsburg, but now most compacts and Jetta's are made in Mexico. Maybe other models as well. Doubt they last as long or run as well.

The BYD electric I can see being very popular in Germany. Biden has banned one of those Chinese EV's from sale here.

 

[zaangalewa]

I guess the US of Trump have just simple a lack of enemies.

 

[JWBooth]

Reasonable response to government policies.
Faithfully being a party to US sanction regime in addition to their own social policies is going to kill all Western European industry.

 

[Votto]

https://www.cnn.com/2024/09/02/investing/volkswagen-factory-closure-germany/index.html

Volkswagen is weighing whether to close factories in Germany for the first time in its 87-year history as it moves to deepen cost cuts amid rising competition from China’s electric vehicle makers.

In a statement Monday, the German automaker, one of the world’s biggest car companies, said that it could not rule out plant closures its home country. Other measures to “future-proof” the company include trying to terminate an employment protection agreement with labor unions, which has been in place since 1994.

“The European automotive industry is in a very demanding and serious situation,” said Volkswagen Group CEO Oliver Blume. “The economic environment became even tougher, and new competitors are entering the European market. Germany in particular as a manufacturing location is falling further behind in terms of competitiveness.

Volkswagen, which embarked on a €10 billion ($11.1 billion) cost-cutting effort late last year, is losing market share in China, its single biggest market. In the first half of the year, deliveries to customers in that country slipped 7% on the same period in 2023. Group operating profit tumbled 11.4% to €10.1 billion ($11.2 billion).

The lackluster performance in China comes as the company loses out to local EV brands, notably BYD, which also pose an increasing threat to its business in Europe.




20% of the German economy is automotive. This will be unbelievably bad for them given their in-country parts sourcing.

Germany/Europe - Allow Chinese products to flood their country (for reasons, I'm sure).

Germany/Europe - Well, time to lay people off.

Also Germany/Europe - Hey wait a minute how come the "far right" are winning elections?

Meh, welcome to the 70s in the US, at least we got well-built Jap. rides.....The only down side was the bodies were made of recycled steel Black Label beer cans.

 

[Mac-7]

https://www.cnn.com/2024/09/02/investing/volkswagen-factory-closure-germany/index.html

Volkswagen is weighing whether to close factories in Germany for the first time in its 87-year history as it moves to deepen cost cuts amid rising competition from China’s electric vehicle makers.

In a statement Monday, the German automaker, one of the world’s biggest car companies, said that it could not rule out plant closures its home country. Other measures to “future-proof” the company include trying to terminate an employment protection agreement with labor unions, which has been in place since 1994.

“The European automotive industry is in a very demanding and serious situation,” said Volkswagen Group CEO Oliver Blume. “The economic environment became even tougher, and new competitors are entering the European market. Germany in particular as a manufacturing location is falling further behind in terms of competitiveness.

Volkswagen, which embarked on a €10 billion ($11.1 billion) cost-cutting effort late last year, is losing market share in China, its single biggest market. In the first half of the year, deliveries to customers in that country slipped 7% on the same period in 2023. Group operating profit tumbled 11.4% to €10.1 billion ($11.2 billion).

The lackluster performance in China comes as the company loses out to local EV brands, notably BYD, which also pose an increasing threat to its business in Europe.




20% of the German economy is automotive. This will be unbelievably bad for them given their in-country parts sourcing.

Germany/Europe - Allow Chinese products to flood their country (for reasons, I'm sure).

Germany/Europe - Well, time to lay people off.

Also Germany/Europe - Hey wait a minute how come the "far right" are winning elections?

Meh, welcome to the 70s in the US, at least we got well-built Jap. rides.....The only down side was the bodies were made of recycled steel Black Label beer cans.

Aint the new global economy and doing business in communist china wunnerful?

 

[JGalt]

Aint the new global economy and doing business in communist china wunnerful?

Business with other countries is ok, until you give them the edge they need to create a trade imbalance. That was Bill Clinton who gave the CCP their "most favored trade nation" status, back in 1997.

May heaps of fuck be upon his head.