Volkswagen considers closing its German factories for the first time in 87 years due to rising competition from Asian rivals and shrinking profit margins.
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Volkswagen is considering closing its factories in Germany due to increasing pressure on their profit margins from the increasing competition seen by their rivals in Asia. This decision would be the first in the company's 87 year history, in regards to closing a factory in Germany. The company has always believed in their long commitment to job security for their employees working in these factories. The situation the company is in has been stated as “very serious” and cannot be fixed by simple cost-cutting.
Volkswagen owns a portfolio of 10 well-known brands, including Audi, Lamborghini, Porsche, and Bentley to name a few. The CEO of the company, Oliver Blume, stated “The European automotive industry is in a very demanding and serious situation”.
