Volkswagen, Germany's largest automaker, is facing significant economic challenges, prompting discussions of potential plant closures and layoffs.

The company's intensified cost-cutting measures have sparked political debate, with CDU leader Friedrich Merz criticizing Germany's economic competitiveness and questioning VW's focus on electric vehicles.

Meanwhile, the Green Party argues that such debates harm the company and its employees.

VW's reliance on the Chinese market and the shift towards electrification and digitalization present dual challenges.

The company aims to save billions to improve profitability, but this may involve breaking long-standing job security agreements.

The situation has alarmed industry experts and political leaders, highlighting the broader implications for Germany's industrial landscape.