Volkswagen is preparing for one of its biggest restructurings in decades, with plans to shrink its car lineup and reduce production capacity. The company aims to cut its range of models by up to half and lower annual output from 10 million to 9 million vehicles. Sources suggest this overhaul could cost around 100,000 jobs, nearly double earlier estimates.
Oliver Blume, CEO, is reportedly considering closing four German plants — Hanover, Emden, Zwickau, and Audi’s Neckarsulm site. While Volkswagen has not confirmed these details, the speculation has already triggered strong protests across its sites. Workers in Wolfsburg marched with union flags and banners, warning of a major conflict if closures and mass layoffs go ahead.
The IG Metall union and Volkswagen’s works council have demanded clarity, saying employees are not responsible for the industry’s crisis. They highlighted growing fear and uncertainty among staff. The works council has set a deadline for management to address job cut rumours, warning of further extraordinary staff meetings if silence continues.
Volkswagen’s supervisory board, which includes unions, owner families, and the state of Lower Saxony, is deeply divided. This power sharing often complicates decision making. The company has previously promised unions it would avoid German plant closures, exploring alternative uses for underutilised sites. But new data shows capacity utilisation at German plants could fall sharply by 2030, making closures harder to avoid.