Volkswagen weighs four German plant closures, up to 100,000 job cuts

BERLIN: Volkswagen is considering shutting four factories in Germany and expanding planned job cuts to as many as 100,000, Reuters reported, citing two people familiar with the matter.

The proposal, which would be discussed at a July 9 supervisory board meeting, could mark the largest restructuring in automotive industry history.

The plants under consideration are Hanover, Zwickau, Emden and Audi’s Neckarsulm site. Their closure would put more than 45,000 jobs at risk, in addition to 50,000 cuts already planned.

Volkswagen is under pressure from Chinese automakers, higher US tariffs on car imports and weak demand in Europe. The company has previously said its current business model is becoming unsustainable.

Chief Executive Oliver Blume presented the plan to senior executives earlier this week as he seeks support for deeper cost cuts. The measures are expected to face resistance from unions and the state of Lower Saxony, Volkswagen’s second-largest shareholder.

Manager Magazin first reported the overhaul and said Volkswagen may cut investment by about 15% to just over €130 billion, or $148 billion, over the next five years.

The report also said Blume and Chief Financial Officer Arno Antlitz are considering wider restructuring, including spinning off the core VW brand and parts operations into separate entities.

Volkswagen declined to comment on confidential documents, but a spokesperson said the group, including its brands and subsidiaries, would need far-reaching change.

Volkswagen’s works council and IG Metall said they would oppose such measures. The premier of Lower Saxony also said the state would not agree to the plan.

Volkswagen shares fell 3.4% on Friday and were trading at 16-year lows, reflecting investor doubts over the restructuring plan.

The group had a global workforce of 667,164 in its 2025 financial year, with nearly 43% employed in Germany.

Blume’s earlier attempt to close German plants in 2024 was resisted by labour unions, forcing management to step back from parts of its cost-cutting plan.

The pressure has increased as Volkswagen loses ground in China, where local electric vehicle makers have gained market share. According to AlixPartners, non-Chinese automakers’ share in China fell to 32% in 2025 from 57% in 2020.

Volkswagen, once China’s top automaker, was overtaken by BYD in 2024 and dropped to third place in 2025.

Chinese automakers are also expanding in Europe. BYD, Chery, SAIC and Leapmotor doubled their combined European market share through May compared with a year earlier, according to ACEA.