Financial Pressures and Cost-Cutting Measures
The Volkswagen Group is taking drastic steps to address its financial challenges:
Factory Closures in Germany: Plans to close two factories in Germany aim to save approximately 1 billion euros over the next two years.
Union Opposition: These cost-cutting measures have met fierce resistance from powerful German labor unions.
Employment contracts: Many Volkswagen employees in Germany have contracts that make it difficult to terminate their employment, complicating restructuring efforts.