(Sharecast News) - German automotive giant Volkswagen warned on Monday that it would no longer be able to rule out plant closures across the country amid major cost-cutting efforts to "future-proof" the firm.
"The European automotive industry is in a very demanding and serious situation," said chief executive Oliver Blume. "The economic environment became even tougher, and new competitors are entering the European market. In addition, Germany in particular as a manufacturing location is falling further behind in terms of competitiveness."
Blume said Volkswagen "must now act decisively" and that it would require a "comprehensive restructuring".
VW also brought an end to its 1994 employment protection agreement in order to address "urgently needed structural adjustments for greater competitiveness in the short term".
As of 1630 BST, Volkswagen shares were up 1.87% at €97.98 each.
Reporting by Iain Gilbert at Sharecast.com