Volkswagen considering plant closures in Germany to cut costs

Volkswagen considering plant closures in Germany to cut costs

German automotive giant Volkswagen is considering closing its production plants in Germany to cope with rising costs.

Alongside these potential closures, Volkswagen has also hinted at possible layoffs. The group said it had to cancel a long-standing agreement with labor unions in Germany, which has been in place since 1994 and aimed at preventing compulsory redundancies until 2029.

Profit margins at Volkswagen's passenger car brand have long been depressed, and the group is looking to improve its financial position by reducing costs. However, in the transition to electric vehicles, consumer spending has slowed and cost cutting has become more difficult.

Volkswagen currently employs about 650,000 people worldwide, nearly 300,000 of them in Germany.

REUTERS VIDEO

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