Death Of Europe’s Industrial Base: 140,000 VW Jobs At Risk As Union Brands Turnaround Plan “Cloud Cuckoo Land”
If further evidence is needed to support Nomura analysts’ view that Europe’s 18-month election cycle, which is kicking off now, will accelerate the continent’s shift toward potential right-wing political victories, look beyond years of nation-killing mass migration under progressive governments. The real-time deindustrialization of Europe, or the death of Europe, particularly in Germany, is quickly eroding the left-wing establishment’s popularity and providing much-needed momentum to the right-wing Alternative for Germany party.
The latest horror story emerging from Germany, Europe’s top economic engine, is a warning from Volkswagen Group labor representatives that the struggling automaker could ultimately eliminate as many as 140,000 jobs.
VW CEO Oliver Blume and VW brand chief Thomas Schäfer will unveil a turnaround plan for the automaker later today that will detail workforce reductions and the potential shutdown of some production lines.
We first previewed the incoming announcement over the weekend:
Volkswagen is Germany’s largest manufacturer by revenue, and the warning of massive job cuts underscores the deepening crisis inside the country’s industrial core. VW’s earnings have been crushed by sliding sales in China, high labor and energy costs in Germany, and a flood of Chinese EVs undercutting domestic brands across the continent.
Bloomberg reported that VW management is considering cutting another 500,000 vehicles from annual European production capacity, reducing white-collar workers, cutting costs, and eliminating unpopular models and equipment variants.
The outlet quoted Christiane Benner, head of Germany’s largest industrial trade union, IG Metall, who called the CEO’s plan to cut massive numbers of workers and lift margins to 9% “cloud cuckoo land.”
The economic misery spreading across Germany and the rest of Europe, as left-wing governments hollow out the continent’s industrial base, is igniting a massive backlash. Nomura analysts expect Europe to “lurch right” during the coming 18-month election cycle (read report).
Tyler Durden Tue, 08/25/2026 – 08:05
Source: https://freedombunker.com/2026/08/25/death-of-europes-industrial-base-140000-vw-jobs-at-risk-as-union-brands-turnaround-plan-cloud-cuckoo-land/
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