Volkswagen Plans to Shut German Plants, Putting 40,000 Jobs at Risk

WOLFSBURG/BERLIN — German automaker Volkswagen is reportedly planning to completely halt vehicle production at its Zwickau and Emden factories within the next five years, a move that would put roughly 40,000 jobs at serious risk, according to sources.
The company is preparing for a major organizational overhaul that could see production shut down at several German plants. The weekly magazine Der Spiegel, citing sources close to the company’s supervisory board, reported that CEO Oliver Blume intends to end vehicle production at the Zwickau and Emden plants over the coming five years.
According to the report, the commercial vehicle plant in Hanover will close in 2032, while Audi’s Neckarsulm plant is slated to shut down in 2024. The magazine noted that around 40,000 employees currently work across these four sites. CEO Oliver Blume has also set a target of cutting 50,000 jobs company-wide by 2030.
Meanwhile, both a spokesperson for the supervisory board and a labor representative on the board declined to comment on the matter.
Economists say the proposals represent one of the most fundamental transformations in the history of the world’s second-largest automaker. The plans were set to be discussed at a supervisory board meeting held in Wolfsburg on Thursday. Germany’s powerful IG Metall union immediately condemned the plans and organized a protest rally in Wolfsburg during the board meeting.
Traditional petrol-powered vehicles face intense competition from rising demand for technologically advanced electric cars — with China emerging as the biggest rival, its vehicles having captured a significant share of the European market. This growing pressure has pushed European automakers into a slump, with Volkswagen standing as a prominent example.