Volkswagen Stands on the Brink of Historic Transformation

Volkswagen's future could be decisive for the fate of Germany's automotive industry. The management of the automotive giant is conducting emergency meetings with employees against the backdrop of an unprecedented cost-cutting campaign, during which, according to some data, up to 100,000 jobs may be cut and several factories in the Federal Republic of Germany may be closed. In total, nine separate meetings will be held.

A deep structural crisis exists in Germany's automotive sector, driven by competition from Chinese rivals, the shift to electric vehicles, and rising production costs. Volkswagen, the largest automaker in Europe by production volume, is particularly affected by excess production capacity and high fixed costs in its German plants.

Employees are extremely concerned about the consequences of the restructuring, which some consider "disastrous." Workers have already agreed to a reduction of around 50,000 jobs, largely through voluntary exit programs, but management assesses that another similar reduction is necessary.

Currently, Volkswagen employs nearly 630,000 people and has previously decided to take control of more production phases, including assembly parts and software, and has absorbed Škoda, Porsche, SEAT, and Bugatti, resulting in the industry's most bloated workforce compared to all players.

Volkswagen's CEO, Oliver Blume, mentioned in an interview with Bild am Sonntag on August 25 that he has developed "the largest transformation program in Volkswagen's history."