The current government faces the daunting task of reversing the decline of the automotive sector amidst rising political extremism and economic uncertainty.

The decision to close factories is influenced by a contraction in the European car market, which remains below pre-pandemic levels.

Volkswagen aims to achieve 10 billion euros in cost savings by 2026, but its Passenger Car division is falling short of this target.

Volkswagen is currently grappling with a potential crisis, which may lead to layoffs and factory closures as indicated by the company's leadership.

CEO Oliver Blume has highlighted significant cutbacks are necessary in the company's home market due to a shrinking European market and increasing competition.

Blume also emphasized that the European auto industry is facing unprecedented challenges, exacerbated by a worsening economic environment for Volkswagen.

The company is currently short approximately 500,000 vehicle sales in Europe, which is equivalent to the production capacities of two factories.

Critics attribute Volkswagen's challenges to both government policies promoting green agendas and the company's internal failures to adapt to market changes, particularly in electric vehicles.

Saskia Esken, chair of the SPD, has criticized Volkswagen's leadership for neglecting electric mobility and over-relying on the Chinese market, which is now pivoting towards electric vehicles.

IG Metall has proposed a potential shift to a four-day workweek as a strategy to avoid factory closures, reminiscent of previous cost-cutting measures.

Germany's economy is facing ongoing challenges, with industrial production sharply declining, highlighting the severity of the situation for major sectors.

Experts suggest that a shift in political and economic policies is necessary for Germany to regain its industrial competitiveness, as current approaches are seen as ineffective.