Volkswagen is considering closing four of its German factories and cutting up to 100,000 jobs across the group, Reuters reported last week, citing internal planning documents. The supervisory board meets on July 9 to review the proposals; no decisions have been finalised.
What is under consideration
Four sites are named in the report: Hannover, Zwickau, Emden and the Audi plant in Neckarsulm. Total headcount reductions could reach up to 100,000 positions across all VW Group brands and subsidiaries. Capital investment would be cut by 15 percent over the next five years, bringing the five-year budget to €130 billion. A further restructuring option under review would spin off the core Volkswagen passenger car brand and the components division into standalone companies.
Background
VW Group has attributed the pressure to three overlapping factors: a sustained decline in European vehicle demand, sharpening competition from Chinese manufacturers, and US import tariffs introduced earlier this year.
Reaction
IG Metall, the union representing Volkswagen workers, has said it will contest the closure plans. Worker representatives hold half the seats on the VW supervisory board, giving them a formal vote on any final decision.
