By Alimat Aliyeva

Volkswagen, a symbol of Germany's industrial might in the years after World War II, is now experiencing an event that could affect the economy and political landscape of this country – the closure of factories, Azernews reports.

The company's struggle to transition from traditional internal combustion engines to electric vehicles (EV) highlights the broader challenges facing the German automotive industry. As Europe's largest economy struggles with increasing competition, declining production and political instability, the prospect of Volkswagen plants closing could mark the beginning of a new and challenging era for Germany as an industrial power.

In mid-August, the Volkswagen electric car plant in Zwickau was shut down. The company has already abolished night shifts and terminated contracts with hundreds of temporary workers. What started as a cost-cutting measure quickly turned into a seismic event: one of Germany's most famous manufacturers announced that it could close factories for the first time in its 87-year history. The move not only signals Volkswagen's problems, but also highlights a broader crisis in Germany's industrial sector. Although the country still has strong industrial potential, the competitive environment has changed in recent months. The rise of China and the tightening of environmental regulations pose a real threat to Germany's traditional industries.

Chancellor Olaf Scholz and his government will have to find a way to balance short-term electoral problems with long-term programs to revive the German economy. To avoid a crisis, Germany needs to create another economic miracle in the industry to become the leader of clean energy in Europe.

The future of the German economy and its industrial identity now depends on whether companies like Volkswagen can successfully survive this turbulent period. Currently, the company's difficulties are related to the fact that old industrial models do not meet the requirements of the 21st century.