Volkswagen Management Proposes Closing Four German Plants Between 2031 and 2034

According to supervisory board documents, Volkswagen Group's Management Board plans to cease production at four German plants between 2031 and 2034. Specifically, the Emden and Zwickau plants will halt production in 2031, the Hanover plant in 2032, and Audi’s Neckarsulm plant in 2034. Currently, the Emden plant produces the ID.4 and ID.7 electric vehicles; Zwickau manufactures the ID.3, Cupra Born, and Audi Q4 e-tron; Hanover produces the ID. Buzz electric van; and Neckarsulm builds the A5 and A6 internal combustion engine models, as well as the A8 sedan, which is scheduled to end production in 2024. Volkswagen Group forecasts global sales of 8.5 million vehicles in 2024, lower than the projected 8.98 million in 2025. The company also plans to sell or divest parts of its business, including assets such as Ducati, Traton, Gotion High-Tech, QuantumScape, and SGL Carbon, through options like full sales or reducing its stake. A Volkswagen spokesperson declined to comment on the contents of the supervisory board documents. The Volkswagen supervisory board is scheduled to meet on September 4, where CEO Oliver Blume is expected to again push forward cost-cutting measures aimed at raising the group’s profit margin to 9%. In the second quarter of 2024, Volkswagen’s profit margin stood at just 4.2%. Union representatives estimate that up to 140,000 jobs could be at risk—comprising 50,000 positions already agreed upon for reduction in Germany, another potential 50,000 cuts globally, and approximately 40,000 roles tied to the four aforementioned plants.