World News for Students of English

09-07-2026 07:00

Volkswagen is planning to cut tens of thousands of jobs and potentially close European factories because its traditional business model is no longer working.

CEO Oliver Blume emphasizes that building cars in Germany for global export has become inefficient due to a declining Chinese market, high regulatory burdens, and competition from aggressive Chinese manufacturers.

VW’s previous efficiency plans from 2024 are no longer sufficient to protect its market share. Meanwhile, Chinese carmakers have captured a record 10% of the European market. They successfully bypassed the EU’s 2024 tariffs on fully electric vehicles by shifting their focus to hybrid models.

To protect domestic automakers, European politicians are currently discussing the Industrial Accelerator Act. This legislation could introduce new tariffs on hybrids or enforce Made in Europe requirements, which would compel foreign companies to manufacture their vehicles locally within Europe. This trend is already seen in recent partnership deals in Spain.

Difficult words: burden (something difficult, heavy, or worrying that you are responsible for or must deal with, like a lot of tax or too many rules), bypass (to avoid), compel (to force a person or a company to do something because of a strong law, a rule, or a difficult situation).

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