Table of Contents
The crisis gripping Germany’s car industry is deepening as Volkswagen considers cutting up to 30,000 jobs to save money.
The automaker recently said it may close factories in its home country for the first time in its 87-year history.
Analysts at investment bank Jefferies said VW was considering closing two or three facilities, which it said could put up to 15,000 jobs at risk.
Threat to jobs: VW recently warned it could close factories in its home country for the first time in its 87-year history
But according to German publication Manager Magazin, losses could reach 30,000.
Germany, the continent’s largest economy and once an industrial powerhouse, is in the throes of a prolonged manufacturing crisis that has led to it being dubbed “the sick man of Europe.”
This is partly because China is gaining ground and competing directly with its auto manufacturing sector.
VW is its largest industrial employer and Europe’s largest carmaker by revenue.
The company, which employs around 300,000 people in Germany, has said significant cost-cutting measures are needed across the group.
A spokesman for the group said: “We cannot confirm the figure. One thing is clear: Volkswagen has to reduce its costs at its German plants.”
“How we will achieve this goal together with workers’ representatives is part of the upcoming discussions.”
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investment and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free investment ideas and fund trading
interactive investor
interactive investor
Flat rate investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading commissions
Trade 212
Trade 212
Free treatment and no commissions per account
Affiliate links: If you purchase a product This is Money may earn a commission. These offers are chosen by our editorial team as we believe they are worth highlighting. This does not affect our editorial independence.