Volkswagen Plans to Close Three Factories in Germany
Volkswagen Group has announced plans to close three production facilities in Germany for the first time in the company's 87-year history. The decision is related to falling demand for electric vehicles in Europe and increased competition from Chinese manufacturers.
According to VW management, the company is facing excess capacity of 500,000 vehicles per year. The IG Metall trade union has already called the plans "catastrophic" and threatened strikes.
Our Analysis:
This is the first case of mass factory closures by a European automotive giant since 2008. Experts predict a wave of restructuring in the industry — Mercedes-Benz and BMW may follow VW's example in 2026.