China is getting the European automotive industry on a silver platter, and the current strike at VW only confirms it
"When two quarrel, the third one laughs." A proverb that fits the current situation in the automotive industry more than ever. The battle between Volkswagen unions and company management, which has led to the current strike, has a clear winner – Chinese car manufacturers and the Chinese industry.
The strike at Volkswagen is one like no other in recent history. That’s how one could describe the action planned for Monday, December 2nd. A total of nine plants will join, including the headquarters in Wolfsburg. According to the union, which is using the strike to fight against wage cuts, layoffs, and the closure of some factories, the strike is expected to last about two hours. However, the winner of the whole action is already known – China.
The unions have long been sharply critical of VW management's proposal to reduce wages by 10%, which is justified by the need to cut costs and increase profits in response to declining demand and growing competition, particularly from the ever-strengthening Chinese competition. The Volkswagen union – IG Metall considers these demands unacceptable and warns of further strikes, which should take place if no agreement is reached in the currently planned round of negotiations.
The unrest in the carmaker comes at the least opportune time, as the European automotive industry is facing extensive problems. Chinese carmakers, with government financial support, are rapidly expanding into the European electric vehicle market, often offering more affordable models than their European competitors. For example, the Chinese company BYD has already surpassed even American Tesla in electric vehicle sales and plans to open manufacturing plants in Europe to strengthen its market presence. For European players, these reports are increasingly disastrous.
European carmakers, including Volkswagen, are trying to adapt to these changes, but they continue to face internal issues such as strikes and disagreements over wage conditions. These internal conflicts can further weaken their market position and provide Chinese manufacturers with the opportunity to further strengthen their position in Europe.
The current strikes at Volkswagen not only disrupt production and threaten the company's financial stability, but also offer Chinese carmakers the opportunity to further penetrate the European market. If European manufacturers are unable to respond to these challenges quickly and effectively, they risk losing their current position and further weakening against the growing Chinese competition.
The current strike and any subsequent actions only add fuel to the fire consuming the European automotive industry. “How mentally retarded do you have to be to strike as an employee of a European carmaker? All you're doing is providing content for Chinese TV,”, stated on his social media account on X, for example, former banker Radovan Vávra.
