Volkswagen is considering unprecedented factory closures in Germany, threatening a confrontation with powerful unions as the country’s most important industry fights for its future.
The possible measures also include an attempt to end the company’s three-decade-old pact with workers to keep jobs safe, the company said Monday. VW’s main target is its underperforming namesake passenger car brand, whose profit margins are being squeezed amid a stuttering transition to electric vehicles and a slowdown in consumer spending.
Any closures would be the first in Germany in the company’s 87-year history. VW shares closed 1.3% higher on the news, paring year-to-date losses of 13%.
