German Car Industry Faces Existential Crisis, Suggests Selling Factories to Chinese as 'Bold Decision'
German car industry warns of job collapse, suggests selling factories to Chinese rivals as 'bold decision' - because nothing says saving jobs like handing them over to the competition.
The German Association of the Automotive Industry (VDA) has warned that Europe's car sector could face a job collapse unless society accepts some 'bold decisions' - like, say, handing over factories to foreign competitors. Because nothing says 'saving jobs' like giving the keys to the very rivals you're worried about.
Volkswagen is preparing to propose up to 100,000 job losses, a move that has predictably sparked protests. Hildegard Müller, VDA president, lamented that 'reality has overtaken political goals' and that the economic crisis is affecting the entire European industry. She suggested opening German plants to foreign manufacturers as a way to keep locations open, adding that 'every location we can keep here secures jobs.'
The automotive sector employs an estimated 3 million people in Germany, making it the backbone of the economy. But a Boston Consulting report found that Europe's production capacity now exceeds demand by more than 5 million vehicles a year - the equivalent of 35 production sites. That's a lot of unsold cars.
Volkswagen's cost-cutting program aims to slash up to 100,000 jobs by 2030, double the previous plan, and may involve closing several plants. The plans will be presented to the VW supervisory board on Thursday, with trade union IG Metall calling for a day of action at all VW locations. According to Die Zeit, events are also planned at Porsche, Audi, and MAN.
The VDA warned that political leaders cannot insulate factories from change, and ignoring this would have profound 'anti society' consequences. Because nothing says pro-society like mass unemployment and selling out to China.
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