Volkswagen’s Woes Reflect a Stagnant German Economy

Sedang Trending 3 minggu yang lalu

You person a preview position of this article while we are checking your access. When we person confirmed access, nan afloat article contented will load.

Germany’s largest automaker rode a activity of beardown income for years, but lagging request and unit from China are forcing it to see layoffs.

An assembly statement of achromatic and bluish cars astatine a Volkswagen factory.
Volkswagen has said it is considering occupation cuts and mill closings successful Germany for nan first clip successful its 87-year history.Credit...Ingmar Nolting for The New York Times

Melissa Eddy

By Melissa Eddy

Melissa Eddy traveled to Hanover, Germany, to talk to workers up of costs talks betwixt national leaders and representatives of Volkswagen.

Oct. 9, 2024

No manufacture is much important to nan German system than automobiles. And nary carmaker is much important than Volkswagen.

Now, arsenic nan 87-year-old automaker is floating nan imaginable of occupation cuts and mill closures arsenic it seeks to return to profitability, Volkswagen’s struggles are being reflected successful nan wide troubles facing nan country, which is grappling pinch a shrinking business assemblage and an system that is forecast to statement for a 2nd consecutive year.

“The truth that Volkswagen, Germany’s largest car manufacturer, largest business employer and nan world’s No. 2 down Japanese carmaker Toyota, is nary longer ruling retired works closures and compulsory redundancies shows really heavy nan German manufacture is now successful crisis,” said Carsten Brzeski, main economist astatine ING Germany.

The issues dragging connected profitability astatine Volkswagen’s halfway marque — high-priced labor, cumbersome organizational structures and an inability to support up pinch advances by Chinese automakers — reflector those facing Germany’s wide economy.

On Monday, nan German authorities said nan system would statement 0.2 percent successful 2024, down from a erstwhile projection of 0.3 percent growth. Dragging output down is nan business sector, which has grounded to retrieve from nan shocks of nan coronavirus pandemic and Russia’s penetration of Ukraine successful 2022.

Germany besides appears to person mislaid immoderate clout successful nan European Union, which voted connected Friday to enforce higher tariffs connected electric vehicles imported from China, a cardinal trading partner of Germany.


Thank you for your patience while we verify access. If you are successful Reader mode please exit and log into your Times account, or subscribe for each of The Times.


Thank you for your patience while we verify access.

Already a subscriber? Log in.

Want each of The Times? Subscribe.

Sumber Automobil
Automobil