Wolfsburg is at a critical juncture, reminiscent of Detroit's decline. Volkswagen (VW) is forced to consider halving its workforce as value creation wanes.
New leadership must prioritize software development, flexibility, and affordability to navigate these turbulent times. The political landscape shows a shift; the Grand Coalition is perceived as more effective than the current traffic light coalition.
However, all political parties recognize the necessity for a more active industrial policy that allows for economic restructuring, akin to the changes seen in coal and steel industries. Researchers predict a bleak future for the German auto industry, with VW potentially losing half of its workforce, while competition from regions like Baden-Württemberg rises.
Concerns about VW's focus on combustion engines and high electric vehicle prices exacerbate the situation. As negotiations for employment security continue, tensions mount within the company.
The stakes are high: failure to reach a resolution could lead to significant financial pitfalls for VW. The company's future hinges on its ability to adapt quickly and effectively, or it risks becoming an emblem of industrial decline.
