The end of the era of German cars: Volkswagen plans to close several plants in Germany for the first time in 87 years

For the first time in almost a century, a German automotive concern plans to close three plants and cut employee salaries.

Here's What We Know

VW's management has warned that it must take drastic measures due to fierce competition from China, slowing sales in other major markets and the need to switch to electric vehicles.

Volkswagen first started talking about the possibility of closing its German plants in September. At the time, VW CEO Oliver Blum said that "Germany is falling further and further behind in terms of competitiveness as a place to do business".

In the summer of 2022, the then CEO of Volkswagen, Herbert Diess, called a sudden stop in gas supplies from Russia one of the biggest risks for the German automaker. However, at that time, he did not observe a drop in demand in the automotive sector.

VW employs about 650,000 people worldwide, almost 300,000 of whom work in Germany.

Source: FT