Volkswagen has warned of possible closures of its plants in Germany, which has led to mounting tensions with unions representing the workers. This comes amid the industry-wide transition from internal combustion engines to electric ones, which could lead to a decrease in jobs due to the lower complexity and fewer components of electric vehicles. VW’s management and workers’ representatives are now tasked with finding a solution that balances the company’s push towards future technology while also preserving jobs. If any plant gets closed, the entire supply stream could be affected causing secondary impacts on auxiliary industries. Going forward, the situation unfolds in a scenario of discussion, negotiation, or potential showdown between the concerned parties. It is crucial for both VW and the labor unions to work towards an agreement that benefits both groups while safeguarding the German auto industry’s future.
