Overview
- On Wednesday, Aug. 26, CEO Oliver Blume visited German sites including Emden and told staff the company's situation is "more than critical," calling for further cost cuts to match the lowest‑cost European peers.
- Volkswagen says four plants — Emden, Hannover, Zwickau and Neckarsulm — currently lack business plans beyond 2030 and could face closure or repurposing if cost gaps are not closed.
- The group has already pursued a reduction of roughly 50,000 jobs in Germany and reports about 37,000 voluntary agreements so far while warning the wider transformation could affect up to about 100,000 roles.
- Management cites weak margins of roughly 3.8–4% and an excess European capacity of more than 500,000 vehicles a year driven by rising competition from Chinese EV makers and higher U.S. tariffs, which together squeeze funds for new technology.
- Unions including IG Metall are actively opposing closures and staging protests, and Volkswagen says it will seek industrial partners and other solutions while keeping investment commitments in stronger regions such as Brazil.