Carmaker tells staff it expects to sell 500,000 fewer vehicles than before Covid as it defends plan to close German plants
Volkswagen says it has “a year, maybe two” to adapt to a slump in European car sales, as it seeks to justify proposals toThe carmaker told workers at a meeting at its Wolfsburg headquarters on Wednesday that it expected to sell 500,000 fewer vehicles than before the Covid pandemic, “the equivalent of around two plants”, and predicted it would not return to its 2019 level.
Volkswagen disclosed the plans to shut two German factories, one making cars and one components, to its works council on Monday, prompting fury from staff representatives and politicians. The closure plans present a significant problem for the chancellor, Olaf Scholz, whose governing coalition is under severe pressure after losing an election in the German state of ThuringiaVolkswagen was second only to Japan’s Toyota in 2023 vehicle sales. More than any other company, VW is emblematic of Germany’s mighty automotive industry, which has been one of the forces making the country Europe’s industrial heart.
Volkswagen said Europe’s car sales would not return to the 16m across the market in 2019 – before the pandemic disturbed global supply chains, and semiconductor computer chip shortages, in particular, slowed car production. “The market in Europe has recovered since then – but will not return to its former level,” Antlitz said. “We expect around 14m vehicles to be sold per year in the future, if at all. And that has nothing to do with our products or poor sales performance. The market is simply no longer there.”Get set for the working day – we'll point you to all the business news and analysis you need every morningAntlitz flagged financial problems at the Volkswagen brand, in particular.
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