English 
Spanish 
4 min read
7 comments
Volkswagen crisis threatens to wipe out 120 jobs. With factories at risk and the Chinese market lost, the government is racing against time to avoid a collapse in the automotive sector.
The current situation of one of the largest car manufacturers in the world, Volkswagen is putting everyone on alert.
What once seemed unthinkable – an automotive giant facing financial difficulties – now worries both the business sector and government authorities in Germany.
But are we really on the verge of seeing the company sink? Recent government moves show that there is an attempt to reverse the situation, but the crisis seems far from over.
- Citroën Basalt challenges Fiat Fastback sales with a turbo engine that does 13,6 km/L and a price in the range of R$ 89 thousand!
- Get ready! IPVA 2025 brings an unexpected increase: See how to calculate your car tax and find out how much it will weigh on your budget in 2025!
- Men Discover Supercar Graveyard in China and Find Bentleys, Porsches and Aston Martins Rotting
- Volkswagen confirms employees' nightmare: THREE factories will close and mass layoffs will happen
German Economy Minister Robert Habeck has already taken the first step by declaring support for Volkswagen, which is undergoing a delicate restructuring process.
According to Habeck, the company's situation demands attention, and the German government is willing to intervene to prevent a devastating impact on the job market. However, official aid will not come without limits.
The company, which has already broken important collective agreements with unions, still has to face tough negotiations with powerful entities in the sector, and time is running out.
The automotive industry's red alert
Volkswagen's problems span several aspects. Factories, which are already operating at low demand, could suffer even more if the crisis continues.
The risk? Until 120 jobs are at stake.
As Habeck pointed out during his visit to the factory in Emden, Lower Saxony, political help will come, but the company must bear a significant portion of the responsibility for its recovery. “This is the company’s job,” the minister said.
Concerns are also growing over the impact that factory closures would have on the local and national economy.
The German government is already beginning to discuss improvements in infrastructure and incentives for the transition to electric vehicles, one of the bets to save the automaker.
But will this be enough? According to Habeck, the government intends to send “correct signals to the market”, seeking to encourage the automotive sector to adapt to the new demands of electrification, a race that Volkswagen cannot afford to lose.
The end of Chinese rule and the collapse of Europe
A Volkswagen crisis It is not limited to a single factor. Two of the automaker's main markets, Europe and China, are in decline, and this is directly impacting the company's finances.
Arno Antlitz, who leads the brand's financial and operational sectors, was clear in highlighting that the European market shrank after the pandemic and is unlikely to recover to the previous level.
For Volkswagen, this drop in European sales represents half a million fewer cars per year, which inevitably affects profit forecasts and generates idleness in factories.
In China, a former haven for Volkswagen, the scenario has also changed drastically.
The Chinese market, which for decades was the automaker's “golden goose”, was taken over by local competitors, especially BYD, which took the lead in 2023.
Volkswagen CEO Oliver Blume did not hide his disappointment with this change, saying that “checks from China” are no longer arriving. Chinese consumers, once loyal to European brands, now favor domestic options, intensifying the crisis.
An uncertain future for Volkswagen and the parallel with Brazil
Volkswagen's restructuring, expected to last for the next two to three years, is seen as a turning point. The German government is offering support, but with clear limits.
The automaker needs, at the same time, to resolve its internal labor relations crisis, adapt to new global trends, such as electrification, and regain its competitiveness in the markets that once made it a leader.
And what is the parallel with Brazil? In Brazil, Volkswagen is one of the most important automakers, with factories in states such as São Paulo and Paraná.
Em 2023, the company announced temporary shutdowns on production lines in the country due to low demand and logistical difficulties.
Just like in Germany, the company's global crisis could directly affect Brazilian jobs.
If the global scenario does not improve, Volkswagen factories in Brazil could also be impacted, leading to job cuts and reduced production.
Electrification, which the German government is encouraging, is also a major challenge in Brazil, where the automaker is facing difficulties in adapting its production line to this new reality.
The transition to electric cars is still slow in the country, due to the lack of adequate infrastructure, high costs and policies that encourage this change.
Thus, the future of Volkswagen in Brazil depends not only on the success of its global restructuring, but also on how the Brazilian government and the company itself will prepare for this new phase of the automotive industry.
But will the company be able to get out of this crossroads without major losses?
The outcome of this story is still uncertain, and Volkswagen's recovery depends not only on government support, but on its own ability to reinvent itself.
The fact is that the automaker cannot afford to fail – with so many jobs in Brazil and around the world at stake, the responsibility is immense. The next phase of the crisis will be decisive, and the pressure is growing.
Could Volkswagen's global crisis also cause a collapse in Brazilian factories? How should Brazil prepare for this transformation in the automotive market?
They say the government will help, as if the government had any money other than the population's taxes. These executives get rich at the expense of work and have no commitment. If the company is bad, take it from the assets of these bloodsuckers, or let it go bankrupt. I guarantee that there will be several companies to enter this market, and jobs will be created.
The Beetle and Kombi are back in production
that improves
It's amazing to have to come across these sensationalist articles... The VW conglomerate has a GDP greater than many countries... Sales declines always happen in every sector, declines do not mean 'bankruptcy'. It's all different!!!
Germany = expensive labor, high labor costs, taxes, etc. China, everything favorable, cheap labor, few labor rights and mainly, the determination to dominate the global market. Because of the advantages of producing in China, Western industries ended up teaching everything they knew to the Chinese.
Germany is in economic freefall, driven by misguided social and economic policies. With this radical government of the Greens and socialists, Germany has lost its competitiveness in the world and will quickly become a third world country, with rising unemployment, poverty and increased censorship.