Germany's Industrial Struggle: Can It Survive the Global Crunch?

Germany's industrial sector faces a critical juncture as it navigates the loss of cheap energy from Russia and challenges in trade relations with China. The longstanding model of consensual industrial relations is under scrutiny, especially with Volkswagen's potential factory closures, sparking debate about the future of Germany's manufacturing jobs.

Germany's industrial sector is at a critical juncture, grappling with the loss of cheap energy from Russia and dwindling trade relations with China. Questions arise about the future of its longstanding consensual industrial relations model, crucial for post-war economic development.

Volkswagen's unprecedented threat to shutter factories tests this model's ability to withstand global economic pressures. The stakes are high as management and unions begin negotiations amid rising competition from lower-cost Asian car manufacturers.

Government officials acknowledge structural problems but disagree on solutions. As Volkswagen and other industrial giants face existential challenges, the outcome of these negotiations could redefine Germany's industrial future.

(With inputs from agencies.)