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Ifo Chief Fuest: VW Crisis Comes as No Surprise
The crisis at the car manufacturer VW does not come as a surprise to Ifo President Clemens Fuest. "Yes, the situation is very serious," Fuest said on the ZDF "Morgenmagazin." "However, it must be said that this does not really come as a surprise." There have been problems at VW for some time already. Under the former CEO Herbert Diess, it was already discussed whether jobs would have to be cut. "Some things have been put on the back burner."
It has long been known that with electromobility, value creation will move away from Germany, as batteries mainly come from abroad. "We simply have no competitive advantages there. And that means this industry will likely shrink," said the economist. One must adapt to this structural change. This means that employees will have to find work in other areas.
VW is in a severe crisis. On Monday, works council chairwoman Daniela Cavallo reported on VW's plans to close at least three plants in Germany, cut tens of thousands of jobs, and reduce wage rates by ten percent across the board. In addition, the group recorded a sharp drop in profits in the last quarter.
Translated automatically from German.
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