Tunisia Telegraph Reports Volkswagen Crisis

Volkswagen is facing a major crisis due to the decline in the global economic performance and the intensifying Chinese competition. The company is preparing to take cost-reduction measures, including potentially downsizing its workforce and shutting down factories in Germany. Group CEO Oliver Blume confirmed that the situation is critically serious, with an excess production capacity of about 500,000 vehicles annually. He emphasized that closing factories is a last resort, although no final decisions have been made yet. Currently, the company is in negotiations with defense companies to repurpose the Osnabrück plant as an alternative solution. It is also facing resistance from the labor union over the plans to reduce jobs, despite having previously announced the elimination of 50,000 positions.

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