“Corporation in a downward spiral”

Carmaker VW is weakened by power struggles, the emissions scandal and conflicts with suppliers, write Reinhard Bingener and Carsten Germis in conservative daily Frankfurter Allgemeine Zeitung. But the influential regional government, the work council, and management all agree that the biggest challenge still lies ahead in the form of the transition to future mobility. The shift to automated driving, a sharing economy and electro-mobility will be risky for the company and its employees, write the authors. But an unnamed member of the supervisory board said unavoidable cutbacks would likely be less severe than in the 1990s, when VW shed 30,000 jobs. A member of the management board told the authors it will be particularly difficult to protect factories producing engines and gearboxes. The work council wants to compensate for losses with battery production, but management is sceptical about the proposal.

For background, read CLEW’s dossier The energy transition and Germany’s transport sector.