Media Contact
Adam Allington
Volkswagen has announced plans to close plants in Germany for the first time in the company’s 87-year history, amid slumping sales and increased competition from China.
Ian Greer
Research professor, School of Industrial and Labor Relations
Ian Greer is a research professor at Cornell University’s School of Industrial and Labor Relations (ILR) who studies the German auto industry. Despite the rhetoric from VW management, he says it is not only market forces causing current financial problems.
Greer says:
“In recent years VW has been profitable. However, the company paid out 22 billion euros to shareholders between 2021 and 2023, above all to the Porsche and Piech families who hold most of the voting rights.
“If VW closes three plants, the reason will not only be competitive difficulties, but also the decision to pay out dividends rather than to invest in the existing productive tissue.”
