Volkswagen can transfer production facilities to Chinese competitors
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The news in the German press in October revealed that Volkswagen plans to close three factories in the country. When the unions reacted, this decision was abandoned, but the production capacity was reduced because sales fell. This caused some production bands to be wasted in the company’s factories in Germany. Volkswagen, who wants to evaluate these production facilities in some way for a while China -based electric car manufacturers are considering renting.
Volkswagen management is looking forward to the idea of transferring production facilities to Chinese rivals
Company Audi Gernot Döllner, the head of the brand, says that this is definitely something they can think of. David Powels, Volkswagen CFO, says that they are open to everything about potential cooperations, leaving an open door to the idea of transferring production facilities to Chinese competitors. “You need to be open to all options in a dynamic world.” says.
Volkswagen has the capacity to produce 16 million cars per year. However Currently, the demand in the market is approximately 14 million. Therefore, even if the company closes its two factories, it can meet the request. However, the agreement he signed with trade unions in recent months prevents this. So the company now needs to find new solutions. The idea of transferring production facilities to Chinese rivals is revealed.
The fact that a company, which is one of the symbols of the European industry like Volkswagen, is now considering such an option once again reveals how global balances have changed in recent years. Chinese electric car manufacturers have clearly established superior to their European competitors. Although the European Union is trying to help European producers by bringing customs duties to electric cars imported from China, the picture that has emerged so far shows that this is not enough.
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