Key facts
- Volkswagen is considering closing four German plants: Hanover, Emden, Zwickau, and Audi's Neckarsulm site.
- The proposed job cuts could double current estimates to 100,000 positions.
- The German car industry faces significant overcapacity, with Europe's production exceeding demand by over 5 million vehicles annually.
- IG Metall is organizing protests against the proposed restructuring and calling for safeguarding German production.
- The owner families of Volkswagen have seen billions wiped off their investments in recent years.
Volkswagen's proposed restructuring plan, which could involve tens of thousands of job losses and the closure of four German plants, faces a crucial test as the company's supervisory board convenes. CEO Oliver Blume is under pressure to secure approval for deeper cuts from the board, which includes representatives from owner families, unions, and the state government of Lower Saxony. The move comes as the German auto industry warns of widespread job losses due to intense competition from China and significant overcapacity in Europe.
Sources indicate that the proposed job cuts could reach 100,000, double previous estimates, and that plants in Hanover, Emden, Zwickau, and Audi's Neckarsulm site are under consideration for closure. Data suggests that German car plants are operating well below standard capacity, with utilization rates projected to fall further by 2030.
In response, Germany's top industrial union, IG Metall, is rallying workers across approximately 20 Volkswagen Group sites to protest the plans and advocate for safeguarding German production. IG Metall President Christiane Benner urged the group and policymakers to develop ideas that ensure full plant capacity and protect against unfair competition. The German Association of the Automotive Industry (VDA) has previously stated that 'bold decisions' are necessary, including potentially opening German plants to foreign manufacturers to preserve jobs, as Europe's production capacity exceeds demand by over 5 million vehicles annually.