VW, Europe’s biggest car maker Council Head has confirmed it is shutting down its 3 German factories. It is first time in its 87 year old history. VW stareted in 1938 and is now headquartered in Wolfsburg , Germany
VW has 10 factories in Germany with 300 , 000 employees. VW is a german iconic brand and made in Germany proud factor. It is contributing
VW subsidiary Audi is already moving decisively, planning to halt EV production at its Belgium plant in Brussels altogether by the end of February. About 3,000 Audi workers may lose their jobs, a representative of the labor union told news agency AFP
Reasons
VW says profits fall off 14% first time in the history. net profits in the third quarter of 2024 decline by nearly 64% compared with the same quarter a year ago.
Higher cost and Overseas Competition from Chinese companies like Neo and BYD
The 2015 dieselgate scandal did a lot of damage to the brand VW
What is the cause of the problem, Hare0ol.; and Tortoise story.. VW was not doing sufficient innovations to remain on top.. whereas Chinese companies made products with loads of features at low cost.
VW is a victim of electromobility, the EU’s ban on combustion engines, and high energy costs
What is the way forward
- Need to be more product development and lean manufacturing centric
- Need to invite more talents / workforce from other countries who can bringdown the labour cost. But german trade unions are pretty strong.. and we need to see how it is politically handled.
