Volkswagen Warns of Major Challenges Ahead

Volkswagen's CFO Arno Antlitz has indicated that the company has only one to two years to revamp its operations in response to a significant decline in vehicle sales, with a projected 500,000 fewer cars sold in Europe annually. This situation may force the company to close factories in Germany for the first time in its history, which has led to strong backlash from workers and union representatives. Antlitz emphasized the urgency of addressing financial inefficiencies and the need for productivity improvements at German plants as the automotive market grapples with intensified competition and semiconductor shortages. The company's struggles are further complicated by its slow transition to electric vehicles, leading to a loss of market share to competitors like Tesla and Chinese brands. Daniela Cavallo, head of the works council, criticized management for failing to streamline operations and warned against eroding trust with employees. The economic challenges facing Volkswagen reflect broader concerns for Germany's automotive industry amidst increasing pressure from new market entrants and shifting consumer preferences.