- The Volkswagen Group has already introduced plans to chop 50,000 jobs.
- An inside memo seen by Reuters reportedly requires doubling that determine to 100,000.
- CEO Oliver Blume instructed staff the VW Group’s prices are 20% increased than these of its rivals.
To say the Volkswagen Group is in a pickle can be an understatement. The truth that it’s transferring Golf manufacturing exterior Germany by relocating its most essential product to Mexico from 2027 speaks volumes about the associated fee issues the automotive big is dealing with. To chop expenditures, it’s additionally eliminating as many as half of its models and slashing the variety of choices by 75 %. It’s additionally chopping 50,000 jobs throughout its a number of manufacturers and lowering annual automobile manufacturing by a million.
However that doesn’t appear to be sufficient to place the VW Group again on observe. Whereas the corporate isn’t confirming reviews about closing as many as 4 factories, one other rumor associated to its downsizing efforts is gaining traction. As German media reported over the previous couple of days, the layoffs may double to 100,000 over the approaching years. Reuters has seen an inside memo circulating throughout the firm, which warns of a “theoretical deduction” of fifty,000 extra jobs throughout the Group.
The information company cites CEO Oliver Blume lamenting that the VW Group’s prices are 20 % increased than these of equally sized automakers. Whereas the pinnacle honcho is in opposition to plant closures, the memo paints a grim future for the four German plants that Supervisor Magazin talked about in late June as vulnerable to closure.
Photograph by: Audi
‘As of at the moment, we nonetheless can’t verify aggressive use circumstances for the crops of Emden, Hanover, Zwickau, and Neckarsulm within the 2030s.’
Emden is the place the ID.4, ID.7, and ID.7 Tourer EVs are constructed, whereas Hanover assembles the Transporter/Caravelle, ID. Buzz, and the Multivan/California. As for Zwickau, it produces the ID.3, ID.4, and ID.5, together with the Audi This autumn E-Tron, This autumn Sportback E-Tron, and the Cupra Born. Neckarsulm is Audi’s plant and builds the A5, A6, A8, and the E-Tron GT.
As for a way the VW Group may keep away from closures, there have been reviews about holding the lights on by assembling Chinese language automobiles on the underutilized crops. Alternatively, the corporate is searching for a associate within the protection trade. It’s value noting the automotive juggernaut already closed two factories in 2025: Brussels (Q8 E-Tron, Q8 Sportback E-Tron) and Dresden (ID.3).
Blume allegedly instructed staff the VW Group hasn’t absolutely fleshed out the expanded cost-cutting plan. In the meantime, the CEO’s public statement launched just a few days in the past hints at radical adjustments forward:
‘We’re making the Volkswagen Group quicker, extra resilient and extra aggressive: by way of much less complexity, targeted applied sciences, an excellent stronger alignment of merchandise, growth and manufacturing with regional markets, the discount of overcapacities, a streamlined fairness portfolio and considerably leaner buildings.’
27
Supply: Volkswagen
Motor1’s Take: As dire because the state of affairs could have a look at the VW Group, it has the power to get again on its toes. It stays a drive to be reckoned with in Europe, the place Volkswagen and Skoda are the 2 best-selling automakers by way of Could. Elsewhere, the Group grew by eight % in South America through the first half of the 12 months, so it’s not all doom and gloom.
That stated, the state of affairs in China can’t be ignored. Demand fell by a whopping 25.9 % within the first six months of 2026, making it clear the VW Group not resonates with native patrons, who proceed to flock to better-equipped, lower-priced automobiles from home manufacturers.
