Volkswagen's current predicament is the result of years of evolvement which can be traced back to the diesel vehicle emissions fraud over 10 years ago, said Michael Bose, Head of Internationalization with Automotive BerlinBrandenburg.
Europe's biggest carmaker Volkswagen is considering plant closures on home soil for the first time.
It plans to close at least three plants in Germany and cut tens of thousands of jobs, head of the group's works council said on Oct 28.
All Volkswagen plants in Germany will be affected by the plans, with remaining locations also expected to downsize, Volkswagen's works council head Daniela Cavallo confirmed. She shared this information at an employee event in Wolfsburg, Volkswagen's headquarters, though no further details were provided, according to the German Press Agency.
"Volkswagen's current predicament is the result of years of evolvement, which can be traced back to the diesel vehicle emissions fraud over 10 years ago. Even back then, Volkswagen faced serious restructuring problems. Germany's current business environment, involving rising energy costs and various kinds of taxes, is causing great pressure on Volkswagen's production and operation," said Bose.
Volkswagen operates 10 plants for its main brand in Germany, employing around 120,000 people.
The company announced in early September that plant closures and mass layoffs can no longer be ruled out to cope with rising costs.
Volkswagen said on Wednesday that its net profit fell to 1.58 billion euros in the third quarter, a 64-percent drop year on year.
German expert on Volkswagen's predicament
German expert on Volkswagen's predicament
Guangzhou, capital of south China's Guangdong Province, has witnessed a significant surge in customer traffic during the Canton Fair, particularly from overseas buyers, who participate in nighttime consumption facilitated by the city's business districts and catering industry, featuring exclusive discounts during the fair.
The Tianhe Road shopping area, one of the largest business clusters in China, comprising more than 20 large malls, is bustling with activities in the evening as a significant number of customers, including many foreign buyers attending the Canton Fair, visit the area.
Among the customers was Nad, a buyer from Saudi Arabia, who established a clothing company in Guangzhou several years ago after participating in the Canton Fair. He has also drawn a significant number of high-quality customers to the Chinese city.
"I am here two years, but my father for 10 years. I told my friend and my customers to come Canton Fair. Guangzhou is very good for clothing, yes, cheap and quality good, yes, for Guangzhou. My company works clothes in Guangzhou," Nad said.
During the Canton Fair, the malls offer exclusive privileges for overseas buyers, including shopping guides, payment instructions, free subway cards, and discount coupons for various stores, catering to their travel and shopping needs.
The shopping area has experienced a footfall of over 16 million people, with a daily average increase of over 7 percent compared to regular days during the first and second phases of the Canton Fair, which took place from Oct. 15 to 19 and from Oct. 23 to 27, respectively.
"We love this city. We three love this city because we love the night life in this city, yeah, and the people are so kind," said Martin, a buyer from Uruguay.
A riverside bar has introduced a special offer during the Canton Fair to attract numerous buyers from home and abroad to dine. The bar's manager said that during the fair, daily customer traffic has increased by nearly 20 percent, with over half of the customers being overseas buyers.
"This year is when we've had the most people coming to our bar during the Canton Fair in the past couple of years. Our business has grown by about 20 percent, and the bar is almost fully packed by 21:30, so there might be a queue," said Max, the bar's manager.
Furthermore, Guangzhou hosts events such as the International Food Festival and Beer Festival to highlight the nighttime charm of the city to domestic and international tourists, buyers, and exhibitors during the Canton Fair, boosting the nighttime economy citywide.
The third phase of the 136th China Import and Export Fair, popularly known as the Canton Fair, opened in Guangzhou on Thursday and will run through Nov. 4.
Canton Fair attracts foreign overseas buyers enjoying nighttime consumption
