Volkswagen to Close Factories Amid Competitive Pressures

Volkswagen plans to shut down at least three factories in Germany, leading to potential layoffs of thousands of employees. The decision comes as the company faces competition from Asian manufacturers and plans to end its longstanding job security program.

Volkswagen has announced plans to close at least three of its factories in Germany, a move that could result in the loss of thousands of jobs. The specific plants facing closure have not been disclosed, but the decision indicates a strategic shift amid rising competition from Asian automakers.

The iconic German car manufacturer plans to terminate its job security program, which has been in place since 1994. This program prevents job cuts until 2029, and its discontinuation marks a significant change as Volkswagen deals with pressures in a competitive global market.

German union IG Metall has previously identified multiple factories as potential closure targets. Among them are facilities in Osnabrueck, Kassel, and Dresden. The plants are pivotal to Volkswagen's operations, producing a range of components and vehicles catering to various brands within the VW group.

(With inputs from agencies.)