VW May Close German Plants for First Time

Volkswagen is considering closing two factories in Germany for the first time in its 87-year history due to economic pressures and increasing competition, particularly from Chinese electric vehicle manufacturers. The potential closures are part of a broader effort to save costs and improve competitiveness amid declining sales and profits. VW's management, including CEO Oliver Blume and brand chief Thomas Schaefer, will discuss the plans with the company's works council and the IG Metall union, both of which have vowed to fiercely oppose the move. The closures would also mark an end to VW's longstanding employment protection agreement. This potential action highlights the significant challenges facing the European automotive industry, including Germany's declining manufacturing competitiveness.