Volkswagen mulls closure of German factories

Why is Volkswagen considering the closures and how is the carmaker performing?

Volkswagen AG Faces Worker Anger in Showdown Over German Closure Plan
(Image credit: Getty Images)

Carmaker Volkswagen (VW) is considering shutting down two German factories. They would be the carmaker’s first closures in its domestic market, says Jasper Jolly in The Guardian. The Wolfsburg-based manufacturer has informed its employee works council that it was looking at closing “at least one larger vehicle manufacturing plant and one component factory in Germany” in order to save billions of euros. These proposals underline the difficulties traditional European carmakers are having in “switching from profitable but polluting petrol and diesel cars to cleaner but currently less profitable electric vehicles”. 

Why is Volkswagen considering the closures? 

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

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