The future of Volkswagen may determine the fate of the automotive industry in Germany. The management of the automotive concern is holding extraordinary meetings with employees against the backdrop of an unprecedented cost-cutting campaign, during which, according to some reports, up to 100,000 jobs may be cut and several plants in Germany may be closed. Nine separate meetings will be held. The German automotive industry is experiencing a deep structural crisis due to strong pressure from Chinese competitors, the transition to electric vehicles, and rising production costs. The largest automotive group in Europe by production volume, VW is suffering the most from excess production capacity at its German plants and high fixed costs. Workers are particularly concerned about the consequences of the restructuring, which some are calling "catastrophic." They have already agreed to cut about 50,000 jobs, mainly through voluntary departure programs. However, management believes that another similar number will need to be cut. With nearly 630,000 employees today, VW previously decided to take control of more stages of production - including components and software - and has absorbed Skoda, Porsche, SEAT, and Bugatti, now having the most bloated workforce among all players in the industry, writes Deutsche Welle. What awaits the largest car manufacturer in Europe? VW CEO Oliver Blume stated in an interview with Bild am Sonntag on August 25 that he has developed "the largest transformation plan in the history of the Volkswagen group."
