Volkswagen may close German plants for the first time in 87 years, Chinese automakers are the reason

The world's second-largest automaker Volkswagen is facing tough challenges from Asian automakers in Europe itself. According to Jagran, the company is preparing to close some of its plants in Germany. For what reasons is this being done. We are telling you in this news.

European automaker Volkswagen is preparing to close its plants. According to Jagran, the company may close some of its plants in Germany. The special thing is that this could be the first time in 87 years that Volkswagen's plant will be closed. Along with this, the company can also adopt other measures.

The company's group CEO Oliver Bloom has said that Europe's automotive industry is in a serious situation. Competition is increasing due to the constant arrival of new vehicle manufacturers in the European market. Due to this Germany is suffering losses as a manufacturing hub.

According to Jagran, European automobile companies are always facing challenges always the companies belonging to Asia. The competition in the market is going up with the electric vehicle manufacturer BYD of China. The Volkswagen share is continuously going down in its large market, China. During the first half of 2024, China's delivery went down seven percent and the profit also came down to Rs 93600 crore.

There are 6.83 lakh employees in the Volkswagen Company worldwide, and out of them, there are 2.95 lakh employees in Germany. The company will shut down some of its plants in Germany, and then there might be problems for these employees too. Apart from employees, the company can produce 1.4 crore vehicles every year, but the company produced just 90 lakh vehicles last year alone.