Volkwagen Defends Possible Plan to Shut German Factories With Plunging Sales

Volkswagen is planning significant changes at its Wolfsburg headquarters, including shutting down factories in Germany and abolishing long-standing job guarantees to cut costs. Despite having the capacity to produce 40 million cars annually, VW only made 9 million last year. The company has been relying on profits from China to offset high European costs, but new competitors like BYD are challenging VW with superior electric vehicles. Post-COVID, supply chain issues have eased, and consumers are hesitant to buy expensive EVs due to inflation. VW's current strategy may involve less drastic measures than initially suggested, with wage talks underway and potential minimal pay increases for workers. VW is clearly moving away from its traditional business model.

What major change is Volkswagen planning to implement in Germany?

• Hiring more employees

• Increasing production capacity

• Shutting down factories

• Opening new factories

What has been a significant factor in Volkswagen's decision to cut costs?

• High production costs in China

• Decreasing market share in the US

• Overcapacity in car production

• Lack of demand for electric vehicles

Which competitor is mentioned as outperforming Volkswagen with superior electric vehicles?

• Nissan

• Ford

• BYD

• Tesla

What post-COVID factor is no longer affecting Volkswagen's production?

• Government regulations

• Labor shortages

• Supply chain constraints

• High demand for cars

What is a potential outcome of Volkswagen's wage negotiations?

• Expansion of job guarantees

• Massive layoffs

• Minimal or no pay increases

• Significant pay increases