Volkswagen’s (VW) plant in Osnabrück is reportedly at risk of closure following Porsche’s recent decision not to assign production contracts for the facility after Easter 2026. This development comes in the wake of VW’s earlier warnings about potential plant closures in Germany due to high costs and underutilization.
A Volkswagen spokesperson confirmed to German media that Porsche will not be awarding a follow-up contract for the Osnabrück plant, which currently produces three models, including the VW T-Roc Cabrio. The T-Roc Cabrio is set to be discontinued in spring 2026, with no successor planned. Production of the regular T-Roc has already shifted to Portugal, leaving the Osnabrück plant primarily focused on the convertible variant.
Porsche has been the main customer for the Osnabrück facility, using it for overflow production of the two-seater 718 Boxster and 718 Cayman since 2022. These vehicles have been manufactured in Osnabrück due to capacity constraints at Porsche’s main plant in Zuffenhausen, where demand has outstripped supply. However, Porsche’s recent reassessment of its production capabilities suggests that it now expects to meet demand for the upcoming electric versions of these models without relying on Osnabrück.
Currently, Porsche has not confirmed any future orders for the Osnabrück plant, although VW maintains that a final decision regarding the plant’s future will be made during the annual planning round this autumn. The spokesperson emphasized that the allocation of the Osnabrück facility is part of the regular review process conducted for all group plants at the end of the year.
Osnabrück is VW’s second-smallest plant in Germany, employing approximately 2,300 workers. Following the insolvency of the supplier Karmann, which previously produced convertible models for VW, the company took over the plant directly.
The IG Metall trade union expressed surprise over the lack of communication regarding the non-awarding of the contract, particularly before the planning round. Works council head Jürgen Placke noted that while speculation about the contract’s viability had been circulating, the timing of the announcement was unexpected and has contributed to a negative atmosphere at the plant.
Since VW’s board indicated potential plant closures in Germany due to economic pressures, speculation has arisen regarding which facilities may be at risk. Osnabrück and the Gläserne Manufaktur in Dresden, both smaller plants, have been mentioned, although the potential for cost savings from closing these locations is likely limited given their size.
Source: Spiegel.de
