Volkswagen considers closing German plant for the first time

Volkswagen cites industry challenges as it acknowledges the possibility of closing a German plant for the first time and abandons its job protection pledge, which previously guaranteed no layoffs until 2029.

"The European automotive industry is in a very demanding and serious situation," Oliver Blume, Volkswagen Group CEO, said in a statement Monday.

He cited new competitors entering the European markets, Germany's deteriorating position as a manufacturing location and the need to "act decisively."

A Volkwagen plant closure in Germany would mark the first time the automaker, which was formed in 1937, had closed a domestic factory, according to Bloomberg News. It would also be the first time the company had shuttered any of its manufacturing plants since its U.S. facility in Westmoreland, Pennsylvania, closed in 198.

Thomas Schaefer, the CEO of the Volkswagen Passenger Cars division, said efforts to reduce costs were "yielding results" but that the "headwinds have become significantly stronger."

News.Az