VW warns workers of possible German factory closures

Volkswagen said yesterday it was considering shutting two German factories in what would be the carmaker's first closures in its home country as it struggles with the transition away from fossil fuels.

- Jasper Jolly

The Wolfsburg-based manufacturer informed its works council, which represents employees, that it was looking at closing "at least one larger vehicle manufacturing plant and one component factory in Germany" to find cost savings worth billions of euros.

The VW proposals underline the difficulties traditional European carmakers are having in switching from profitable petrol and diesel cars to currently less profitable EVs.

European and US carmakers are also under increasing pressure, particularly from Chinese EV manufacturers that have lower costs and higher profit margins.

Ford last month cited Chinese competition when it cancelled a plan to build a new electric SUV and delayed an EV pickup truck. General Motors, Mercedes-Benz and Volkswagen's Bentley have delayed electrification plans, while the electric car pioneer, Tesla, is struggling to revive falling sales.