Volkswagen plans 35,000 job cuts in Germany amid competition

Volkswagen is set to cut 35,000 jobs in Germany as part of a cost-cutting strategy aimed at countering competition from affordable Chinese manufacturers and stabilizing investor confidence. The company's approach relies on a tradition of cooperation between management and workers, with each factory assigned specific cost-reduction targets to enhance productivity. However, there are concerns among investors about the feasibility of achieving these targets without layoffs, especially given the decline in Volkswagen's stock value since last October. The successful implementation of this restructuring hinges on the ability to maintain peace with labor unions while navigating the challenges posed by global market competition. Observers note that the company's reliance on its historical cooperative model may not provide the certainty needed in this rapidly evolving automotive landscape. Overall, Volkswagen's situation reflects broader challenges faced by established automakers in adapting to changing market dynamics.