- The European Commission (EC) is deeply concerned about the challenges facing the automotive industry, particularly regarding cost-cutting measures at Volkswagen.
- Commissioner Thierry Breton emphasized the need to maintain Europe’s innovation and competitiveness, highlighting the importance of electromobility.
- Public charging stations for electric vehicles are highly concentrated in Germany, France, and the Netherlands, accounting for two-thirds of the total installed in the EU.
Brussels, 9 September (FinanceFlashNews) – The European Commission (EC) expressed growing concern over the current challenges in the automotive sector, noting heightened tensions, particularly in Germany. Thierry Breton, the European Commissioner for Internal Market, pointed to Volkswagen’s extensive cost-reduction plans as an indicator of the industry’s struggles. Breton voiced his worries following Volkswagen’s recent announcement about possible factory closures in Germany as part of its cost-cutting program, reported DPA.
“I’m very concerned about the announcements of plant closures,” Breton said, emphasizing that the priority should be to “preserve and maintain our expertise, innovation strength, and competitiveness.” He attributed the current crisis to the failure of European manufacturers to convince customers of the benefits of electromobility. Breton noted that the success of the transition to electric vehicles depends heavily on the expansion of charging infrastructure.
According to Breton, public charging stations remain heavily concentrated in Germany, France, and the Netherlands, which together represent nearly two-thirds of all public charging points in the European Union (EU). This disparity raises concerns about the wider adoption of electric vehicles across the EU.
Volkswagen, the largest automaker in Europe, announced last week that it could no longer rule out closing factories in Germany as part of a broader cost-cutting initiative. The company also intends to terminate its job security agreement, which has been in place since 1994 and guarantees no layoffs until 2029.
Keywords: European Commission automotive concerns, Volkswagen factory closures, electromobility, charging infrastructure, cost-cutting measures
