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Why Volkswagen is seeking to break the taboo of closing German plants

Europe’s largest automaker has sparked fury over a cost-cutting plan to adjust to weak demand for EVs

An attempt by Volkswagen’s top executives this week to defend their unprecedented plan to close some German factories to 25,000 workers at the carmaker’s Wolfsburg headquarters was met with chants of “We are Volkswagen — you are not”.

Since chief executive Oliver Blume took the helm of Europe’s largest carmaker two years ago, the region’s car industry has been buffeted by strong headwinds, weak demand for battery-powered vehicles at home and stiff competition from local electric vehicles in the Chinese market. His solution: rip up a three-decade-old job security guarantee and break the taboo of shutting down plants in Germany for the first time in its 87-year history.

In just a few years, “the automotive industry has changed massively”, Blume told employees.

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