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Frankfurt, Germany — German automotive giant Volkswagen said Monday it could take the unprecedented move to close production sites in Germany and threatened further job cuts as its savings plans stalled.
Rising costs at the carmaker were cutting into profits, leaving Volkswagen facing “particularly significant challenges”, the group said in an internal memo seen by AFP.
“In the current situation, even plant closures at vehicle production and component sites can no longer be ruled out,” Volkswagen said in the note sent to employees.
Unions and government officials responded with alarm to the idea of plant closures in the group’s home market, a decision never before taken by Volkswagen.
