Volkswagen CEO points to factory closures, cost cuts amid shrinking European market

(MENAFN) Oliver Blume, the CEO of Volkswagen, one of Germany's largest automotive manufacturers, has emphasized the need for significant changes as the European market faces contraction and rising competition. Blume is advocating for the potential closure of the company's factories in Germany for the first time in its history. In an interview with the newspaper Welt am Sonntag, he described the situation metaphorically, stating, "The cake has become smaller, and we have more guests at the table," reflecting the reduced demand for cars in Europe and the intensified competition from new Asian entrants exerting pressure on the market.

On Monday, Volkswagen confirmed that it is considering shutting down some of its factories in Germany and ending job guarantees at six of its plants. These measures are part of a broader strategy to implement a substantial cost-cutting plan, aimed at reducing expenses by 10 billion euros (approximately USD11 billion). This move highlights the company's urgent efforts to adapt to shifting market dynamics and maintain its competitiveness in a rapidly evolving automotive landscape.

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