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Volkswagen Crisis: Challenges and Negotiations Ahead
2024-09-12 09:00:09
Automotive
Business
Europe

Volkswagen Crisis: Challenges and Negotiations Ahead

Image courtesy of : AFP (MORITZ FRANKENBERG)

Volkswagen faces potential layoffs in key plants amidst weak sales in China and expired electric car purchase incentives. Historical job security models contrast with current uncertainties under scrutiny by Lower Saxony and the works council.

Discussions between VW and IG Metall highlight looming negotiations on cost-cutting plans and job security. Meanwhile, concerns shift to BMW's troubles, with price hikes and recalls adding to the German auto industry's woes.

Amidst shifting market dynamics, a push for electric vehicles, and global challenges, German automakers face a rocky road ahead.

Related news on that topic:

Crisis at VW: Scratches in the paint at Volkswagen

Volkswagen is facing a crisis with possible layoffs in several plants, weak sales in China, and the expiration of purchase premiums for electric cars. Lower Saxony and the works council have a say in the situation. Historical models of job security in 1994 and the Hartz model in 2000 are being referenced. Politicians like Scholz, Heil, and Lies are working to secure locations and jobs, while IG Metall representatives Cavallo and Gröger resist attacks on collective agreements. Talks between the VW management and employee representatives are being encouraged by Niedersachsens Ministerpräsident Stephan Weil. The VW crisis is having a wider impact on the German auto industry and the country's economy. The challenges faced by Volkswagen are representative of the weaknesses in the German business model. The industry is also grappling with issues such as the transformation to e-mobility, the global demand shift, and the need for investment in future technologies. The crisis has led to a sharp decline in the stock prices of German automakers, but experts believe in a potential recovery, despite the structural problems in the industry.

BMW Cuts Profit Forecast Amid Industry Challenges

BMW faces a significant reduction in profit forecast due to recalls, delivery bans, and supplier part issues. Problems with Continental's brake system impact over 1.5 million cars, leading to high warranty costs. Weak sales in China contribute to negative sales effects ahead. The German automotive industry grapples with location challenges, transformation costs, and declining electric car demand in Europe. BMW anticipates a double-digit percentage drop in profit before tax. The auto industry faces further challenges with stagnant global electric vehicle sales, European manufacturers losing market share, and rising competition from Chinese automakers.

Read 21 more recent news on this topic

The press radar on this topic:

taz
11. September 2024 um 15:15

Crisis at VW: Scratches in the paint at Volkswagen

Economy
Politics
VW crisis: Possible layoffs in the Wolfsburg, Emden, Zwickau, Ingolstadt and Neckarsulm plants; Weak sales in China; Purchase premiums for electric cars have expired; Lower Saxony and the works council have a say; Historical models: Job security in 1994, Hartz model in 2000; Scholz, Heil and Lies want to secure locations and jobs; IG Metall representatives Cavallo and Gröger resist attacks on collective agreements.
inside-digital
12. September 2024 um 05:58

German car manufacturers burnt out: After VW chaos now disaster at BMW

Economy
Finance
Politics
VW raises prices for new cars; BMW recalls 1.5 million cars due to brake and ABS problems; High warranty costs for BMW.
noz
12. September 2024 um 05:00

VW on the Brink: The Ten Reasons for the Crisis

Economy
Politics
Volkswagen is deeply embroiled in a crisis. The board is wielding the axe, has canceled the job guarantee, and is threatening plant closures. Trade unions are up in arms, and politics is responding helplessly. But what has actually brought Europe's largest automaker VW to its knees?
gmx
12. September 2024 um 07:24

VW and IG Metall to negotiate cost-cutting plans starting on September 25th

Economy
VW and IG Metall will negotiate on September 25th in Hannover about cost-cutting plans, wage negotiations, and job security; VW does not rule out layoffs and plant closures; Job security has been in place since 1994, agreement needed by mid-2025; IG Metall and works council announce resistance; VW tightens cost-cutting plans due to the tense situation.
CW

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