Volkswagen is contemplating something that would have been unthinkable just a few years ago: shutting down as many four factories in Germany and slashing its workforce by 15 percent.
The automaker’s profits tanked 44 percent in 2025, dropping to just 6.9 billion euros. Operating margins were cut in half. The bleeding hasn’t stopped in 2026 either.
CEO Oliver Blume plans to present the closure plan to VW’s board next month. Plants in Hannover, Zwickau, and Emden, along with Audi’s Neckarsulm facility, are all on the chopping block. The cuts could eliminate up to 100,000 jobs — doubling the 50,000 already announced in March.
VW’s struggles aren’t limited to one region. EV sales in North America and China continue to slide. Tariffs have made things worse. Meanwhile, the company did sell more EVs in Europe last year, but that wasn’t enough to offset losses elsewhere.
Factory closures in Germany are politically explosive. The state of Lower Saxony owns a stake in VW, and unions hold serious sway. But Blume says the current business model — developing cars in Germany, building them in Europe, exporting them globally — simply doesn’t work anymore.
