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For Volkswagen, the bumpy road to electric vehicles starts to hit home

Livemint · 10m ago

Medial

Volkswagen's suggestion of potentially closing a plant in Germany for the first time ever has sparked a battle with the company's union and highlights the increasing pressures on the brand. The carmaker's transition to electric vehicles, coupled with a disappointing first half of the year, has led to the possibility of a plant closure. The Volkswagen brand has struggled to meet profit targets, contributing less than 10% of total operating profit in the first half. The brand's weak profitability is partly attributed to its significant investment in electric vehicles. The negotiations with the union are expected to result in a compromise, potentially involving the sale of components businesses.