The economic woes for Germany are coming from every direction. High energy prices and competition from China are undermining its manufacturing and export-oriented economy.
The problems at Volkswagen are apparently worse than previously assumed, according to Manager-Magazine. In the medium term, the number of employees in Germany alone could be reduced by 30,000 to 100,000, the report says referencing group insiders.
It’s not just jobs either, planned investments could be cut by 20 billion euros due to revenue shortfalls. The big miss is in China, where VW sells about one third of all its brands.
I don’t have the original report but here’s a German report highlighting it.
This article was written by Adam Button at www.forexlive.com.
