The crisis engulfing Germany’s car industry is deepening as Volkswagen considers cutting up to 30,000 jobs to save cash.
The car maker recently said it could close factories in its home country for the first time in its 87-year history.
Analysts at investment bank Jefferies said VW was mulling closing two to three facilities, which it said could put as many as 15,000 jobs at risk.
Jobs threat: VW recently warned it could close factories in its home country for the first time in its 87-year history
But losses could hit as high as 30,000, according to the German publication Manager Magazin.
Germany, the Continent’s largest economy and one-time industrial powerhouse, is undergoing a prolonged manufacturing downturn that has seen it dubbed ‘the sick man of Europe’.
That is partly attributed to China muscling on to its turf and going head to head with its car making sector.
VW is its largest industrial employer and Europe’s top car maker by revenue.
The company employs about 300,000 staff in Germany. It has said major cost-cutting measures are needed across the group.
A spokesman for the group said: ‘We do not confirm the figure. One thing is clear: Volkswagen has to reduce its costs at its German sites.
‘How we will achieve this goal together with the employee representatives is part of the upcoming talks.’
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