VW may close four factories to adapt to the future, report says
Summary
Volkswagen Group plans to close up to four factories in Germany and cut about 15 percent of its workforce to lower costs and improve efficiency. The company faced a 44 percent profit drop in 2025 and expects challenges to continue in 2026, prompting a major business transformation.Key Facts
- Volkswagen’s profits fell 44 percent in 2025 to 6.9 billion euros ($7.9 billion).
- The company plans to reduce its workforce by around 15 percent, which means cutting about 95,000 jobs in Germany.
- Factory closures are being considered in Hannover, Zwickau, Emden, and Audi’s Neckarsulm plant.
- VW Group employs over 650,000 people across its brands and divisions.
- The company aims to simplify its products, technology, and management to cut costs and improve efficiency.
- Sales of electric vehicles in Europe were good, but sales fell in North America and China, affected by tariffs.
- The state of Lower Saxony partly owns VW Group and has traditionally opposed factory closures.
- Volkswagen’s CEO Oliver Blume will propose the closure and job cut plan to the company’s board soon.
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