Volkswagen Group is reportedly considering a far-reaching restructuring programme that could include plant closures, significant workforce reductions and a broader overhaul of its corporate structure, according to Manager Magazin.
The publication reported that the proposals were presented by Volkswagen Group CEO Oliver Blume to senior executives during a recent board meeting as part of a strategy presentation outlining the company’s vision through 2030. The report is based on information from sources familiar with the presentation, which has not been made public.
Reported Restructuring Measures
According to Manager Magazin, Volkswagen could reduce its global workforce by up to 100,000 positions over the coming years, compared with previous reports that focused on around 50,000 job cuts in Germany.
The report also claims the company is evaluating the gradual closure of its plants in Hanover, Zwickau and Emden, along with Audi’s factory in Neckarsulm. Production at the sites would reportedly continue for current vehicle programmes before successor models are either cancelled or transferred to other manufacturing locations.
The publication also reported that Volkswagen is considering separating its core Volkswagen passenger car brand and Components division into standalone entities, potentially making them easier to access capital markets.
NDR later reported that it had obtained documents related to the restructuring plans prepared by Volkswagen’s executive board.
Electric Vehicle Plants Among Sites Named
If implemented, the reported plans would affect approximately 40,000 employees across the four production sites, which together have an annual manufacturing capacity of around 750,000 vehicles.
The Zwickau and Emden factories are dedicated electric vehicle production plants. Zwickau manufactures the Volkswagen ID.3, ID.4 and ID.5, as well as the Cupra Born and Audi Q4 e-tron. Emden produces the Volkswagen ID.4, ID.7 and ID.7 Tourer.
The Hanover plant builds the ID. Buzz and ID. Buzz Cargo alongside Volkswagen Commercial Vehicles’ T-series models, while Audi’s Neckarsulm facility primarily manufactures combustion-engine and hybrid vehicles, with the nearby Böllinger Höfe site producing the Audi e-tron GT.
Volkswagen has already reduced production capacity at both Zwickau and Emden in response to lower demand.
No Official Confirmation
Volkswagen has not confirmed the reported restructuring programme, and the strategy presentation remains an internal document.
According to Manager Magazin, the proposals are expected to be presented to the company’s supervisory board on 9 July. Any final decisions would likely require consultation with employee representatives.
Union Responds
IG Metall criticised the uncertainty created by the reports while declining to comment on confidential internal documents.
In a joint statement, IG Metall Chair Christiane Benner, Volkswagen Group Works Council Chair Daniela Cavallo and IG Metall District Manager Thorsten Gröger said:
“The latest media reports are understandably causing uncertainty among our workforce and in the regions where our sites are located. But attacks on the Volkswagen Act, co-determination and our sites are irresponsible threats. Should such plans be pursued, we will oppose them with all the means at our disposal.”
The representatives said management should instead focus on strengthening Volkswagen’s competitiveness.
“Instead of engaging in blind activism, the Management Board should finally do its job and focus on its core responsibilities: competitive products, technologies, Group structures and synergies, and therefore secure employment.”
The statement added that the reported documents would be discussed through the company’s established governance processes and that Volkswagen, like the wider automotive industry, continues to face significant structural transformation.
