Volkswagen Scandal Worries the City of Wolfsburg
Wolfsburg, the fifth largest city in the Germany's lower Saxony houses the headquarters of Volkswagen along with one of the largest of the world's car manufacturing factory. The auto plant is huge and could fit Monaco well within it. The jobs in the plants support the city of 125,000 and also inject cash for many developmental causes.
The apartments built by the auto maker houses thousands of residents and a Volkswagen theme park that's worth $500 million attracts almost 2.2 million visitors every year.
However, the reputation of the company is at stake with the recent diesel emission scandal that the car maker got embroiled in. The scandal might cost Volkswagen billions of euros as penalties and on recalls. It's not just the company but the town is also suddenly worried as they face lean times, which they have never known.
Fearing a drop in revenues, the town has halted its big spending on educational programmes , renovations and expansions of sports and cultural centers. Even the planned road projects have either being put on hold or being reconsidered.
Reportedly, the Volkswagen Group, that owns an array of car brands like VW, Bentley, Porsche, Seat, Audi, Bugatti and Lamborghini is already trimming productions. Matthias Müller, the VW chief executive said on Tuesday, that a tough road lies ahead of the company and the future investments would be "under scrutiny."
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