Volkswagen in turmoil: 15,000 jobs at risk as plants face closure
German car giant Volkswagen is facing a major crisis, with 15,000 jobs at risk and several of its factories facing closure.
The company has been hit by a number of problems in recent years, including the diesel emissions scandal, which has cost it billions of euros in fines and compensation.
Volkswagen is also facing increasing competition from rivals such as Toyota and Tesla, and is struggling to keep up with the shift towards electric vehicles.
The company has announced plans to cut 15,000 jobs worldwide, and is considering closing several of its factories in Germany, including its plant in Emden, which employs 9,000 people.
The closures would be a major blow to the German economy, and would likely lead to job losses in other sectors, such as the supply chain.
Volkswagen is currently in talks with unions about the job cuts and factory closures. The company is hoping to reach an agreement that will avoid compulsory redundancies.
However, the unions are likely to resist any job cuts, and the closures could lead to industrial action.
The crisis at Volkswagen is a major challenge for the German car industry, which is facing a number of challenges, including the shift towards electric vehicles.
The German government is likely to come under pressure to intervene and help Volkswagen, which is one of the country's largest employers.
However, the government is also facing a number of other challenges, including the coronavirus pandemic and the war in Ukraine.
It remains to be seen whether Volkswagen can weather the storm and emerge stronger, or whether the crisis will lead to the decline of one of Germany's most iconic companies.
Sources:
https://www.bbc.com/news/business-62626627
https://www.theguardian.com/business/2022/jul/13/volkswagen-to-cut-15000-jobs-and-close-factories-in-cost-cutting-drive
https://www.ft.com/content/d709ab77-0917-4518-a9e3-807396441304
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