(RTTNews) – German auto big Volkswagen Monday warned that it’s contemplating closing two factories within the nation, to curb prices.
The Wolfsburg-based producer knowledgeable its works council, which represents staff, that it was seeking to shut “no less than one bigger automobile manufacturing plant and one element manufacturing unit in Germany” to avoid wasting billions of euros in bills.
Volkswagen Group CEO Oliver Blume acknowledged in a written assertion, “The European automotive business is going through a really demanding and critical scenario. The financial atmosphere has turn out to be much more difficult, and new opponents are getting into the European market. Moreover, Germany, as a producing hub, is falling additional behind when it comes to competitiveness.”
Volkswagen indicated that its numerous manufacturers would require a “complete restructuring.” The corporate added that the present scenario has escalated to the purpose the place plant closures at automobile manufacturing and element websites can not be dominated out.
VW model CEO Thomas Schafer strengthened this by saying, “The scenario is extraordinarily tense and can’t be resolved by means of easy cost-cutting measures. Due to this fact, we intend to start out discussions with worker representatives as quickly as doable to discover choices for sustainably restructuring the model.”
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