Volkswagen is in the middle of a crisis that could cost several car factories in Germany their lives. At the same time, thousands of jobs are at risk.
Volkswagen faces significant challenges. The car giant is experiencing a significant decline in profits, which fell by more than 40 percent in the third quarter.
The crisis is due to, among other things, rising costs for raw materials and unstable sales. The group now earns only DKK 962 per sold car.
The situation is further aggravated by problems at Audi, part of Volkswagen's "Progressive" segment.
Here, sales have fallen by 15 percent in the first nine months of the year, and the profit margin is now down to 4.5 percent. This figure is only slightly higher than for Volkswagen's cheaper car brands.
To counter the crisis, Volkswagen has announced the closure of three factories in Germany. In addition, thousands of employees are expected to lose their jobs.
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The remaining employees may be forced to accept a pay cut. According to Thomas Schäfer, who heads Volkswagen's passenger car division, the costs of running the VW factories are twice as high as those of competitors.
As part of the savings, Audi has decided to close a factory in Brussels. The factory, which dates back to the 1940s, is closing permanently.
Volkswagen is thus faced with a comprehensive restructuring that must secure the group's future in a time of rising costs and increased competition.
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