Volkswagen’s executive board is reportedly considering closing four German production plants between 2031 and 2034 as part of a wider restructuring plan aimed at reducing costs and improving competitiveness.
According to Der Spiegel, citing supervisory board sources, the proposal led by Group Chief Executive Officer Oliver Blume would phase out production at the Zwickau and Emden plants by 2031, followed by the Hanover factory in 2032 and Audi’s Neckarsulm plant in 2034.
The reported plan is expected to be presented to Volkswagen’s supervisory board and is likely to face strong opposition from board members and the company’s influential works council.
Cost-Cutting Measures
The reported restructuring would include reducing the group’s workforce by around 50,000 positions by 2030, in addition to lowering planned investment for the 2027-2031 period from €180 billion to €135 billion.
Volkswagen currently employs approximately 657,000 people worldwide.
The proposal follows earlier reports by Manager Magazin that outlined an internal “Group Target Picture” strategy for 2030, which reportedly included the closure of four factories and significant workforce reductions. The document has not been officially adopted.
EV Plants Among Sites at Risk
Two of the facilities reportedly under consideration—Zwickau and Emden—are dedicated battery electric vehicle (BEV) manufacturing plants.
The Zwickau factory produces the Volkswagen ID.3, ID.4 and ID.5, along with the Cupra Born and Audi Q4 e-tron. The Emden plant manufactures the Volkswagen ID.4, ID.7 and ID.7 Tourer.
Volkswagen has already reduced production capacity at both plants by consolidating operations from two production lines to one.
The Hanover facility serves as the headquarters of Volkswagen Commercial Vehicles and manufactures the all-electric ID. Buzz, ID. Buzz Cargo and T-series models, while also operating a battery assembly line.
Audi’s Neckarsulm plant primarily builds internal combustion engine and hybrid vehicles, although its Böllinger Höfe facility also produces the all-electric Audi e-tron GT.
Combined, the four sites employ around 40,000 workers and have an annual production capacity of approximately 750,000 vehicles.
Broader Transformation
Volkswagen has pursued extensive cost-cutting measures over the past two years under Blume’s leadership.
The company previously targeted €15 billion in savings in 2024 and €18 billion in 2025. Earlier restructuring agreements with employee representatives called for approximately 35,000 job reductions by 2030, a figure that has since reportedly increased to around 50,000 across the group, including reductions at Audi, Porsche and software subsidiary Cariad.
According to media reports, the latest proposals aim to reduce Volkswagen’s overhead costs by approximately €11 billion by 2030, although the company has not officially confirmed the reported restructuring plans.
