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
To meet the timeline of starting independent customs operations by the end of 2025, the government of south China's Hainan province issued a series of regulations to stipulate import and export management of Free Trade Port (FTP), with two major documents on environmental safety and medicine import put into effect recently.
To further explain the effects and scope of the two documents, the local government held press conferences on Monday and Tuesday.
The "Several Provisions on the Management of Entry Environmental Safety Access in the Hainan Free Trade Port" took effect on Wednesday, which clarified the scopes and responsibilities regarding potential environmental issues of vessels and import products.
"The document regulates the access management of special items such as hazardous waste, remanufactured products, carry-on items of entry personnel, and radioactive materials. Meanwhile, it clarifies that the storage sites for transit goods should meet environmental safety management requirements, to avoid environmental pollution," said Di Weijie, deputy director of the Department of Ecology and Environment of Hainan Province.
In addition, the administrative rule on zero-tariff import of medicines and medical devices in Hainan Free Trade Port was put into effect on Tuesday, stipulating that before Hainan FTP starts independent customs operations, medical institutions, higher medical education institutions, and pharmaceutical research institutes registered in the Hainan's Boao Lecheng Pilot Zone with independent legal status and approved eligibility can import designated pharmaceuticals and medical devices under the zero-tariff policy.
"The scope [of medicines and medical devices imported under 'zero-tariff' policy] consists of two categories: imported pharmaceuticals and medical devices already approved for registration in China, and specially licensed pharmaceuticals and medical devices for the Boao Lecheng Pilot Zone," said Jia Ning, director of Hainan Boao Lecheng International Medical Tourism Pilot Zone Administration, during the press conference.
With policy supports and related efforts like the Ever Lasting International Innovation Medicine Exhibition held in the Boao Lecheng Pilot Zone, medicine and health care is expected to be a new pillar industry for Hainan.
New regulations clarify environment, medicine import issues in Hainan Free Trade Port
