by Giuseppe Gagliano –
Volkswagen’s ability to close some of its factories in Germany for the first time in its long history represents an alarming signal for the European car industry and the continent’s economy as a whole. The statements of the acting president Oliver Blume highlight the seriousness of the situation, described as “extremely serious”, indicating that economic and geopolitical pressures are putting pressure on one of the most important in Europe.
The main causes of this crisis include the increase in energy costs, the difficulties in providing raw materials and essential components, especially semiconductors, and the challenges associated with the transition to electrification and sustainable mobility.
Rising energy prices, exacerbated by the conflict in Ukraine and sanctions against Russia, are eroding the profit margins of manufacturing companies, making it harder to produce in Europe compared to other regions. of the world. In addition, increasing competition from Chinese electric vehicle manufacturers, supported by aggressive government policies and lower prices, threatens the market share of European manufacturers, forcing them to re- examine their production and positioning strategies.
In this context, the closure of factories could be an attempt to reduce costs and reorganize operations to maintain global competitiveness, but it would also have a significant impact on the German labor market and the economic stability of the region .
The closure of plants in Germany would not only mark a turning point in the history of the European car industry, but it could also trigger a chain reaction, adversely affecting related industries and other related sectors, increasing unemployment and reducing domestic demand. Among the possible economic conditions are the increased movement of production to countries with lower operating costs, the acceleration of partnerships and mergers between companies to share the costs of energy transition, and an increase in investment in auto- movement and advanced technologies to improve productive efficiency.
At the same time, the European Union is likely to engage in support policies and incentives for the automotive industry, in an effort to preserve a key sector for the European economy and the green movement his However, without a coordinated response and structural measures to address long-term challenges, the European automotive industry risks losing its position as a global leader, with a major impact on the economy and jobs on the continent. . At this point it is difficult not to see, not without irony, that Germany would do well to think about consolidating its economy instead of investing money in the war against Russia.
