VW Troubles in the press again today

[tracktoy]

Just spotted this on Reuters

VW labour chief sounds alarm on mass layoffs, three German plant closures​

WOLFSBURG, Germany, Oct 28 (Reuters) - Volkswagen plans to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul, the carmaker's works council head said on Monday.

Europe's biggest carmaker has been negotiating for weeks with unions over its plans to revamp its business and cut costs, including considering plant closures on home soil for the first time in a blow to Germany's industrial prowess.

Volkswagen reiterated on Monday that restructuring was needed and said it would make concrete proposals on Wednesday.
"Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round," Daniela Cavallo, Volkswagen's works council head, told employees at the carmaker's biggest plant, in Wolfsburg, threatening to break off talks.
"This is the plan of Germany's largest industrial group to start the sell-off in its home country of Germany," Cavallo added, not specifying which plants would be affected or how many of Volkswagen Group's roughly 300,000 staff in Germany could be laid off.

 

[SRGTD]

Yes, VW aren’t in a great place just now.

I’m not the biggest fan of VW these days, but I hope they can get through their problems and they come out the other side leaner and fitter.

 

[H Rafiq]

What’s the reason? Not making enough profit?

 

[SRGTD]

What’s the reason? Not making enough profit?

From what I’ve read in recent weeks;

1. Shortfall of around 1/2 m sales a year - equivalent to the output of two factories, so production facilities are being under-utilised.
2. Slump in demand from VW’s traditional European markets.
3. Competition from Asia.
4. Slower than expected transition to EV’s.
5. Need to cut costs and restructure to be competitive.

 

[TheSwede]

Deutsche Welle news.

VAG group have problems, that goes for several other brands in the automotive industry in europe.

 

[SRGTD]

Deutsche Welle news.

VAG group have problems, that goes for several other brands in the automotive industry in europe.

Yes, it’s more widespread than just VW or VAG.

A major factor that could impact the financial stability of some car manufacturers is The Zero Emission Vehicle (ZEV) Mandate and it’s challenging targets for EV sales share - and heavy fines imposed (£15k fine per ‘non compliant vehicle sold) for not meeting those EV sales share targets.

The YouTube video below is worth a watch to understand the challenges facing car manufacturers as they’re required to ramp up EV production to meet the ZEV mandated targets. An interesting comment is made by the presenter in the video at around 12min 30sec to 13 min that they wouldn’t be surprised to see a major manufacturer the size of VW or Ford either be acquired by another manufacturer or go bust…..