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Volkswagen’s woes illustrate Germany’s creeping deindustrialisation
The spectre of deindustrialisation has long haunted Germany. Russia’s full-scale invasion of Ukraine in 2022 caused energy prices to spiral. The economy of Germany’s biggest trading partner, China, has slowed. And as competitors, Chinese carmakers are proving more than a handful for Europe’s biggest, Volkswagen (VW). Now the apparition looks worryingly solid. “The signs of deindustrialisation are becoming clearer,” warned Martin Wansleben, head of the German chamber of trade and industry (DIHK), on October 29th.
The most alarming sign so far came the previous day, when Daniela Cavallo, the main official representing VW’s workers, said that the company would close at least three factories in Germany, cut tens of thousands of jobs (30,000, rumours say) and slash pay by 10% (18% for some). VW’s bosses, who have been talking to labour representatives for weeks, have not yet confirmed this. But if the factory closures do go ahead, they will be the 87-year-old carmaker’s first in its home country. On October 30th VW reported a slump in net profit of 64%, year on year, in the third quarter, attributable mainly to weak sales of its cars in China.
This follows months of similarly spine-chilling news. In February Miele, a maker of household appliances, said it would move some production to Poland, which will affect 700 jobs in Gütersloh in North Rhine-Westphalia, the headquarters of the 125-year-old family business. Continental, an automotive supplier, is cutting 7,000 jobs and closing sites. Michelin, a French tyremaker, is slashing 1,500 jobs in Germany and closing factories. And in July ZF Friedrichshafen, another German auto supplier, said that by 2028 it would shed 14,000 jobs.
标题：经济学人 | 大众汽车的困境揭示了德国逐渐的去工业化
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