There have been reports recently that Volkswagen (VW) may close its factories in Germany.
It seems that the factory under consideration for closure may also be the one that produces Porsche's 718 model.
The reason is that at present, the factories in Dresden and Osnabruck are being considered for closure and are under investigation.
The Osnabruck plant produces the Porsche 718 Boxster and 718 Cayman.
However, production of the 718 series is expected to end soon, so even if the factory were to close, it probably wouldn't have much of an impact on those waiting for a Porsche.
Considering this, I thought that perhaps they would cleverly close the factory once production of the 718, which is scheduled to be produced in Osnabruck, is completed (which would minimize the damage to at least one model line), but it seems that Osnabruck also produces the VW T-Roc Cabriolet, the most popular convertible in Europe.
However, the T-Roc Cabriolet is said to be a niche market, with sales of 6,110 units in the first half of 2024, so is this the factory that is being targeted after all?
The Dresden plant is apparently quite small in scale (it currently produces the ID.3), so will they only target this plant after all? But will it be enough to just close this small plant? Hmm.
If VW were to close a factory in Germany, it would be the first time since the company was founded in 1937 before the Second World War.
In addition to the factory closures, VW's job protection programs are also being scrutinized, with the company aiming to terminate agreements with labor unions that guarantee jobs until 2029.
VW CEO Thomas Schafer told German media that the situation is "extremely tense and cannot be overcome by simple cost-cutting measures."
This news was announced at a time when the VW Group was reporting that sales volumes for the first half of 2024 were generally strong, which also makes me wonder...For VW, in the first half of 2024, sales in the European market increased by 1.91 TP1T compared to the same period last year, in the US they increased by 3.01 TP1T, in South America they increased by 15.41 TP1T, and in Asia they decreased by 8.21 TP1T.
Foreign media say a major problem is uncertainty in the EV market, with sales for many brands sluggish at the start of their EV expansion plans, and VW in particular, which bet heavily on full electrification, struggling considerably.
VW reported that in the first half of 2024, EV sales in Europe were down 15.21 TP1T compared to the same period last year, and in the United States, they were down 15.41 TP1T.
There are reports that an explanation will be given to VW employees on September 4, 2024, but it seems that it will be difficult for many people to accept.
Source:
◆VW Could Close German Factories for First Time in Its History
◆Volkswagen weighs first-ever German plant closures amid EV transition woes
Related article:Porsche 718 model to start production at Volkswagen site