The VW crisis threatens Germany's prosperity model with job guarantees being cancelled and plant closures looming. The crisis exposes structural weaknesses such as high costs, slow bureaucracy, and insufficient investments.
Production and supply chains have also been disrupted by protectionism and the COVID-19 pandemic. Questions about political responsibility and trade union co-determination arise.
The structural change required demands political reforms to promote it. The federal government, which aimed to drive structural change, has so far achieved the opposite.
The causes of the VW crisis are complex, intertwined with management's poor decisions and erratic political interventions, making finding a solution particularly challenging. The industry demands better conditions from the government, with the BDI President criticizing the current situation and emphasizing the need to advance electric mobility in line with the industrial sector.
The VW CEO justifies the cost-cutting measures due to the difficult European automotive market and the deteriorating competitiveness of German locations. Subsidies are being considered as a possible solution, while the Left party calls for shareholders to repay a 4.5 billion euro dividend.
The crisis has led to discussions on implementing a four-day workweek to improve the quality of life for employees and prevent job losses. This move could have a significant impact on the industry and serve as a signal to other companies.
The VW crisis has brought to light the need for new concepts of prosperity due to resource scarcity.
