Volkswagen’s announcement that it is considering layoffs and even the closure of entire plants in Germany should be seen as an alarm signal about how bad things are now for the industrial location. The Wolfsburg management will not have placed its message without ulterior motives shortly before the start of its collective bargaining negotiations with IG Metall. But that doesn’t change the fact that the situation for Europe’s largest automobile manufacturer is becoming increasingly precarious. The returns for the volume brand from Wolfsburg are simply not enough to successfully manage the transformation to digital and electric vehicles. The general weakness of the high-priced location in Germany, the difficult-to-calculate path to electromobility and the increasing risks in China result in a toxic triangle for the group. The crisis has been looming for years. All of these developments have been happening around the VW locations for several years Years ago: suppliers slipped into insolvency, temporary workers lost their jobs, and permanent staff received fewer bonuses due to the loss of shifts. However, decisive countermeasures were not taken for a long time. Because the returns from the premium Porsche brand and hefty profits from China compensated for, or better yet: concealed, the problems at the local VW locations.More on the topicWith the help of its blocking minority, the state of Lower Saxony will now do everything it can to continue to open the plants and jobs in its own territory protect. In this respect, the interests between the SPD-led state government and the powerful works council run parallel as usual, but they are not identical. Because while IG Metall will defend the high wages of its permanent workforce, the country must now uncompromisingly focus on the long-term future of the locations. Ultimately, due to its other structural weaknesses, Lower Saxony is even more dependent on the automobile industry than Baden-Württemberg or Bavaria.
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