VW crisis: Shocking profit losses and impending factory closures!

VW crisis: Shocking profit losses and impending factory closures!

Wolfsburg, Deutschland - A huge shock for Volkswagen: the winning giant of the automotive giant has broken into a frightening 63.7 percent in the third quarter and is now only 1.58 billion euros. This was announced on Wednesday from Wolfsburg. Sales were slightly 0.5 percent to 78.48 billion euros. The causes are alarming: high costs and a dramatic decline in sales in China, where the numbers have dropped by 12 percent. While North America and South America have had growth, the European market remains stagnating.

The corporate management speaks of a "challenging market environment" and blames high fixed costs and costs for restructuring. Arno Antlitz, the CFO of VW, emphasizes the urgent need for cost reductions and efficiency increases. The Situation could continue to worsen, since the works council threatens with a nationwide paralysis of the works, management should not immediately respond to the concerns of the employees. These are unsettled and show themselves combative: "We will not participate in this downward spiral," says Uwe Kunstmann, the overall head of the Volkswagen Saxony.

protests and impending factory closures

The anger of the employees is tangible: Thousands gathered in Zwickau to breathe their displeasure with the impending factory closures and wage cuts. The e-car factory in Zwickau could be particularly affected, where 10,000 employees work. The plans stipulate that in the future only produces on a production line. Management also requires an immediate wage cut by 10 percent and zero rounds for the next two years.

The federal government has already responded and demands VW to secure jobs. Chancellor Olaf Scholz emphasizes that management's mistakes must not be held on the back of the employees. While the automotive industry is facing a change, the situation at VW is becoming increasingly critical. Experts warn that the transformation to e-mobility could not only endanger VW, but also 190,000 jobs in the entire industry. A "hot winter" is imminent, and the next steps of VW and politics will be decisive.