Volkswagen’s warning last week of job cuts and potential production line closures in its home market for the first time in its 87-year history sent shockwaves through the country.
The storm clouds for Germany’s largest carmaker have, however, been forming for several years, due to soaring production costs, a weaker domestic economy post COVID-19 and intense competition from China. VW’s faltering electric-vehicle (EV) strategy is adding to the company’s revenue woes.
The automaker must make some €10 billion ($11.1 billion) in cost savings over the next three years, which could mean thousands of job losses and the likely shutdown of some of its 10 German assembly lines.
