Reference News Network December 18 report: According to the website of the German "Berlin Daily" on December 15, what was long considered impossible has now become a reality: Volkswagen Group, Germany's largest automobile manufacturer, will stop car production at its Dresden factory on Tuesday. This is the first time in the company's 88-year history that it has closed a factory in Germany.

Volkswagen Group recently announced that the factory will be transformed into an "innovation park for key technologies such as artificial intelligence, robotics, microelectronics, and chip design" starting next year. It is said that the jobs of its 230 employees are temporarily retained.

The German automotive industry is currently experiencing one of the most severe crises in its history. Experts estimate that the industry has lost about 120,000 jobs since 2018. For decades, the automotive industry has been a pillar of the German economy, but it is now struggling with multiple challenges, such as rising domestic production costs, obstacles in the transition to electric vehicles, increasing competition from China, and tariffs imposed by the Trump administration. For months, Volkswagen Group's sales have declined sharply, and profits have plummeted severely.

A firm engaged in consulting services, A.T. Kearney, said that low capacity utilization could force European and German automakers to close up to eight factories. The company stated that the average capacity utilization rate of car factories in Europe is only 55%, and plants with capacity utilization far below three-quarters are dragging down the profits of car manufacturers. Fabian Piontek, head of A.T. Kearney's German branch, said this could lead to serious consequences, "In the coming years, European automakers may sell 1 to 2 million fewer cars due to the rise of Chinese car brands."

Although the employees of the Volkswagen Dresden factory will not lose their jobs for the time being, the entire industry has sounded the alarm. Automotive parts suppliers such as Bosch have been particularly affected by the deepening crisis of Volkswagen, BMW, and other manufacturers. Experts say some German automotive parts suppliers may "not survive" this crisis. (Translated by Wang Qing)

Original: toutiao.com/article/7585133166092878387/

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