Volkswagen Group (VW), one of Germany's most important automotive manufacturers, is preparing to lay off 100 thousand people worldwide due to the decline in sales, increasing Chinese influence in the European market and difficulties in competitive conditions.
The crisis in the automotive industry in Germany has been greatly affected by Volkswagen's (VW) restructuring and layoff plans in recent days. According to reports in the German media, Volkswagen, one of the country's most important automotive manufacturers, is preparing to lay off 100 thousand people worldwide due to the decline in sales, the increasing Chinese influence in the European market and the difficulties in competitive conditions. According to the news, which includes an internal message sent by Volkswagen CEO Oliver Blume to employees, the automotive giant will make approximately 50 thousand additional layoffs to reduce costs. Thus, the planned layoffs in the Volkswagen Group, which includes brands such as Porsche, Audi, Seat and Skoda, will reach 100 thousand. In his message, CEO Oliver Blume emphasized that VW's costs are 20 percent higher than its competitors, and that expenses need to be reduced, which means job loss for 50 thousand people worldwide. It was reported that CEO Blume emphasized that the number of people to be laid off has not been finalized yet, therefore the personnel reduction is a theoretical calculation made without any adjustments in labor costs.
VW Group had previously announced that it planned to lay off approximately 50 thousand people in Germany by 2030.
4 factories are at risk of closure
German automotive giant Volkswagen's restructuring plans include the gradual closure of its 4 factories in Germany. In the news in the German media, it was stated that VW factories in the cities of Zwickau and Emden, Audi's factory in Neckarsulm and the commercial vehicle factory in Hannover were at risk of closure.
Profit fell, competition increased, China is influential in the European market
VW's restructuring plan, which is the most important indicator of the crisis experienced by the automotive industry in Germany, came after falling profits, increasing competition and the increasing influence of Chinese cars in the European market. VW Group's profits had fallen noticeably in recent years. The company, which reported a profit of 22.6 billion euros in 2023, announced that it would make a profit of 19.1 billion euros in 2024 and only 8.9 billion euros in 2025. - BERLIN