German automaker Volkswagen has agreed to close four plants in Germany as part of austerity measures

Aksana Kutsarskaya September 2, 2026 7:57 The management of the German automaker Volkswagen has decided to halt production at plants in Emden, Hanover, Zwickau, and Neckarsulm. This was reported by WirtschaftsWoche magazine, citing an internal company document in its possession, according to TASS.

According to the magazine, vehicle production in Emden and Zwickau is set to end in 2031, in Hanover in 2032, and in Neckarsulm in 2034. The document, titled "Report on the Conceptual Decision of the Supervisory Board of September 3-4, 2026," is intended to pave the way for a final decision by the controlling body at the end of this week. The report describes the critical situation Volkswagen finds itself in. "The existing business models and structures are no longer sufficient to ensure the long-term competitiveness and profitability of the Volkswagen Group," the document states.

It also speaks of the need to "stabilize Volkswagen AG's rating and the associated costs of raising capital and refinancing." That is why the board intends to push through an overall comprehensive and highly radical restructuring plan with the supervisory board, the publication summarizes.

It is also emphasized that production is planned to be relocated to less costly sites in the Czech Republic, Slovakia, and Poland. According to the publication, the German plants could avoid closure if costs are reduced from the current 6,490 euros per vehicle to the pan-European level of 2,832 euros by the summer of 2027, but experts call this unrealistic.

Earlier, the head of the German automotive giant Volkswagen, Oliver Blume, reported that as part of austerity measures the group plans to cut a quarter of management positions. In the spring, Blume announced the start of work on a new strategy and his intention to significantly tighten the cost-saving course. Since then, a battle has been underway over tens of thousands of jobs and the company's four plants. The figure of 50,000 employees that had been circulating recently was described by the head of the automaker not as a "target benchmark" but as a "theoretical calculated figure" that follows from cost optimization. He sees roughly half of this volume of cuts in Germany and the other half worldwide, across some 170 of the company's divisions.

On August 25, the newspaper Bild reported that Blume was booed during a production meeting at the company's main plant in Wolfsburg. Some employees held up signs with messages expressing dissatisfaction with the company's management.

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