24/7 Wall St. Insights Volkswagen abandoned its electric vehicle (EV) plans and warned of plant closures in its home market.
The U.S. National Highway Traffic Safety Administration said on Tuesday that Volkswagen would recall 98,806 electric SUVs to fix their door handles as they do not offer enough protection against water ingress.
Volkswagen's CEO, who is pushing for unprecedented cutbacks in the German carmaker's home market, said change was needed because the European market is shrinking while competition is increasing.
While many of Volkswagen's challenges have plagued it for a while, two recent developments have made things worse.
Having lost cheap energy from Russia and facing uncertainty over its once-lucrative trade ties with China, big German business is now facing a crunch point over a third ingredient in its long-time formula for success - consensual industrial relations.
Volkswagen's PowerCo battery subsidiary will build just one of two planned production lines at its Salzgitter plant in Germany for now, its works council said, as the sector adjusts to slowing demand for electric vehicles.
Germany's largest trade union, who sit on Volkswagen's supervisory board , said on Thursday they will leave no stone unturned in coming up with alternatives to the carmaker's threats of plant closures, with a 4-day week as one option.
Germany's manufacturing industry is facing a critical juncture as Volkswagen and Intel weigh significant operational changes. Volkswagen, a cornerstone of Germany's automotive sector, is contemplating closing several of its German plants for the first time in its 87-year history.
Former Volkswagen CEO Martin Winterkorn said Wednesday the charges against him were "implausible" as he testified at his trial over the "dieselgate" scandal that rocked the German auto titan.
Volkswagen's plan to close plants in Germany and dissolve long-standing labour agreements with unions has put the spotlight on its unique governance and ownership structure that have drawn criticism from investors for years.
Management at German automotive giant Volkswagen is set to go toe-to-toe with workers in a townhall on Wednesday as senior business leaders are set to present details about prospective cuts. Volkswagen on Monday warned that it was no longer able to rule out closing plants in its home country of Germany.
Business sentiment in the German automotive industry slid deeper into negative territory in August, according to a survey, providing a gloomy backdrop to labour talks due to start on Wednesday at Volkswagen over its ambitious cost-cutting drive.