Volkswagen is facing a new crisis as the European automotive market struggles to recover from the impact of the COVID-19 pandemic. The company's austerity measures, including factory closures and the termination of job security guarantees, are causing significant unrest among the workforce.
Experts argue that these measures are necessary to prevent a full-blown crisis, but union leaders and employees are resisting them vehemently. The German government, including Chancellor Olaf Scholz, has been involved in discussions with VW management and union representatives, emphasizing the importance of the company and the need to protect jobs.
However, experts warn against state intervention, suggesting that the company must undergo comprehensive restructuring to improve its competitiveness. The situation at VW is also raising concerns about the state of the automotive industry in Germany as a whole, with fears of job losses and the loss of competitiveness.
Other automakers, such as Porsche and Mercedes-Benz, are also grappling with the effects of the crisis. The situation is particularly worrisome for suppliers in NRW, such as Thyssenkrupp, who are already burdened by high energy costs.
In order to overcome these challenges, the industry will need to focus on innovation and cost reductions while navigating the structural changes brought about by the shift towards electric mobility.
