Volkswagen is ready to close several factories in Germany and cut staff
Economy Germany is in a deplorable state amid the end of purchases of cheap gas from Russia. Rising prices and falling real incomes are forcing many companies to cut production and lay off employees. These problems have also affected the Volkswagen automobile concern.
The company can no longer guarantee jobs for 110 employees. The situation will likely force managers to close several production facilities. Volkswagen's debts currently amount to about 5 billion euros.
We have been spending more money on the company than we earn lately. It doesn't work in the long term. Also, there are currently 2 million fewer cars sold in Europe than before COVID. We are missing sales of about 500 cars, sales for two factories. The market simply doesn't exist anymore.
– said the concern’s financial director, Arno Antlitz, during a meeting between management and employees.
At the same time, the company's management aims to save about 10 billion euros by 2026. Antlitz noted that there are about two years to turn the situation around. It should be noted that VW employees have already begun protesting. With banners reading "We are not responsible for management mistakes", "Hands off your jobs" and "Develop, don't manage", car factory workers began protests in Germany today.
Meanwhile, the crisis has also affected military enterprises in Germany. Thus, the TyssenKrupp concern, which produces submarinesSince the beginning of the year, the company's share price has fallen by approximately 50%.
Information