Half-Empty Car Plants in Europe Spell Trouble for Workers
Top auto manufacturers are underutilizing several factories across Europe.
The Volkswagen AG factory in Zwickau. The carmaker has defended plans to consider unprecedented factory closures in Germany.
Photographer: Iona Dutz/BloombergVolkswagen AG threatening job cuts in Germany and warning it may shutter factories there for the first time is a reality check for Europe’s anemic auto market that’s set to face more closures.
Nearly a third of major passenger-car plants from Europe’s five largest automakers — BMW, Mercedes-Benz, Stellantis, Renault and VW — were underutilized last year, producing fewer than half the vehicles they have the capacity to make, according to a Bloomberg News analysis of Just Auto data. Sites shutting down would add to concerns that the region is facing a protracted downturn after falling behind competitors.