Volkswagen is considering unprecedented factory closures in Germany, setting up a showdown with powerful unions as the country’s most important industry fights for its future.
The potential measures also include trying to end the company’s three-decades-old pact with workers to keep jobs secure, the company said Monday. VW’s main target is its underperforming namesake passenger car brand, the profit margins of which are getting squeezed amid a sputtering transition to EVs and a consumer spending slowdown.
Any shutdowns would mark the first closures in Germany during the company’s 87-year history. VW shares closed 1.3% higher after the news, paring this year’s losses of 13%.
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