16:23 - 16.10.2025

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October 16, Fineko/abc.az. German auto giants Volkswagen, BMW and Mercedes-Benz have faced falling profits and rising costs, especially due to weak demand for electric vehicles.

ABC.AZ informs that Volkswagen is considering the closure of several plants in Germany and temporary downtime at individual sites.

According to the IG Metall trade union, the agreement with company's management makes it possible to avoid mass layoffs until 2030. BMW and Mercedes-Benz are also reviewing production plans, but there is no threat of bankruptcy.

Experts attribute the difficulties to competition from Chinese electric vehicles and high cost, expecting capacity optimization and a focus on next-generation electric vehicles in the coming years.