Workers install a European Union election campaign poster at the Volkswagen AG factory in Wolfsburg, Germany, in May.
Photographer: Krisztian Bocsi/BloombergVW Turns on Germany as China Targets Europe’s EV Blunders
Losing ground in the race to produce electric vehicles, German and French carmakers are heading toward a disruptive wave of factory closures
Volkswagen AG is considering factory closures in Germany for the first time in its 87-year history, parting with tradition and risking a feud with unions in a step that reflects the deep woes roiling Europe’s auto industry.
After years of ignoring overcapacity and slumping competitiveness, the German auto giant’s moves are likely to kick off a broader reckoning in the industry. The reasons are clear: Europe’s efforts to compete with Chinese rivals and Tesla Inc. in electric cars are faltering.