AutoGear
  • Latest News
  • AutoGear TV
  • Sustainable Mobility
  • Motorsports
    • Circuits
    • Rally
    • Rally raid
    • WEC
  • English
    • Português
    • Italiano
    • Français
    • Español
    • English
    • Deutsch
    • 日本語
  • STANDINGS
No Result
View All Result
AutoGear
  • Latest News
  • AutoGear TV
  • Sustainable Mobility
  • Motorsports
    • Circuits
    • Rally
    • Rally raid
    • WEC
  • English
    • Português
    • Italiano
    • Français
    • Español
    • English
    • Deutsch
    • 日本語
  • STANDINGS
No Result
View All Result
AutoGear

Volkswagen Faces Unprecedented Plant Closures in Germany Amid Restructuring Plans – Volkswagen CEO: “Can’t Be Avoided”

Miguel Cunha by Miguel Cunha
November 25, 2024
in Latest News
Reading Time: 4 mins read
0
Volkswagen Faces Unprecedented Plant Closures in Germany Amid Restructuring Plans – Volkswagen CEO: “Can’t Be Avoided”

A person carries luggage near the Volkswagen power plant in Wolfsburg, Germany October 30, 2024. REUTERS/Axel Schmidt

In a seismic shift for Germany’s auto industry, Volkswagen Group is poised to close one or more domestic factories for the first time in its 87-year history. According to VW Brand CEO Thomas Schaefer, the company is grappling with overcapacity and mounting challenges, necessitating dramatic measures to restructure operations within the next three to four years.


“No Other Way”: VW’s Stark Reality

In an interview with German publication Welt am Sonntag, Schaefer made it clear that the automaker must adapt to “new realities” in a rapidly changing automotive landscape. With declining demand for certain models and the rising costs of transitioning to electric vehicles (EVs), VW sees no path forward without downsizing its manufacturing footprint.

“We need to reduce capacities and adapt to the new realities,” Schaefer stated. “As it stands, we don’t see any other way to achieve our goals without closing at least one factory.”


Which Plants Are on the Chopping Block?

Two German plants are under serious consideration for closure:

  1. Osnabrück Plant: Known for manufacturing the Porsche 718 Cayman and Boxster, as well as the Volkswagen T-Roc Cabriolet. Production of the Porsche models will end in 2024, followed by the T-Roc Cabriolet in 2025, leaving the plant without a viable production line.
  2. Transparent Factory in Dresden: A smaller facility focused on building the ID.3 EV, it operates at low volume and supplements production from the much larger Zwickau plant.

The potential closures would mark a historic turning point for VW, which has avoided shutting down any German plants since its inception.


Layoffs and Salary Cuts Loom

The closures could lead to significant layoffs. While VW plans to mitigate the impact through natural attrition and early retirement packages, Schaefer admitted these measures alone won’t be sufficient.

  • Executive and Board Salary Cuts: Salaries for VW’s Executive Board have already been reduced by 5% this year, with further reductions likely for both management and employees.
  • Broader Workforce Impact: Thousands of workers across the targeted facilities could face job losses, triggering protests and potential strikes.

Union Backlash and Strikes

VW’s works council and unions are gearing up to fight the closures. The company’s labor representatives have warned of possible strikes in December if the automaker moves forward with shutting down facilities.

The works council, a powerful employee body, has historically worked to preserve jobs and prevent closures. A potential strike could escalate tensions, adding to the already significant financial and operational pressures on the automaker.


Why Restructure Now?

Volkswagen is battling declining profitability in its core European markets and lagging sales of EVs, which have strained resources and reduced production efficiency. With competitors like Tesla and Chinese automakers gaining ground in the EV market, VW’s overcapacity in Germany is becoming untenable.

The company’s move to streamline production is part of a larger effort to secure long-term viability. The closures and associated cost-cutting measures are expected to position VW for a more competitive future, though at a steep short-term cost.


A Historic Shift for Germany’s Auto Giant

Volkswagen’s potential plant closures in Germany signal an era of unprecedented change for one of the country’s most iconic companies. As the automaker navigates a challenging transition toward electrification, the decision underscores the growing pains of legacy automakers in a fiercely competitive global market.

With unions threatening strikes and local communities bracing for economic ripple effects, the road ahead for VW’s restructuring promises to be as contentious as it is transformative.

Share212Tweet133Send

Related Posts

Renault inaugura Refactory Valladolid na caminhada para a descarbonização
Latest News

Renault inaugurates Refactory Valladolid in the journey towards decarbonization.

The Renault Group is implementing its strategic plan with a firm commitment to being a leader in the sustainable industry...

by Virgilio Machado
July 29, 2025
Xiaomi SU7 Ultra visto à saída da fábrica da Ferrari em Maranello
Latest News

Xiaomi SU7 Ultra seen at the Ferrari factory in Maranello.

Ferrari has promised to reveal its first 100% electric supercar in the next spring, and it is certain that by...

by Virgilio Machado
July 29, 2025
Skoda anuncia o início de produção do renovado Enyaq
Latest News

Skoda increases sales in the first half by 13.6%.

Skoda announced this Tuesday that in the first six months of 2025, it delivered 509,400 vehicles to customers worldwide, representing...

by Virgilio Machado
July 29, 2025
Stellantis confirma prejuízo de €2.256 milhões no 1º semestre pressionada pelas tarifas dos EUA
Latest News

Stellantis confirms a loss of €2.256 billion in the first half of the year, pressured by U.S. tariffs.

Stellantis announced this Tuesday that it recorded a loss of €2.256 billion in the first six months of 2025, compared...

by Virgilio Machado
July 29, 2025

Recent News

Tom Dillmann Announces Return to Racing Four Weeks After Spine Injury

Tom Dillmann Announces Return to Racing Four Weeks After Spine Injury

July 30, 2025
Austin Hill Suspended by NASCAR, Playoff Points Stripped: Shocking Crash Fallout

Austin Hill Suspended by NASCAR, Playoff Points Stripped: Shocking Crash Fallout

July 29, 2025
Max Verstappen’s Audacious Plan to Revolutionize Racing Beyond F1 Unveiled

Max Verstappen’s Audacious Plan to Revolutionize Racing Beyond F1 Unveiled

July 29, 2025
Papaya Showdown in Budapest: Piastri vs. Norris Set for Fierce Battle!

Papaya Showdown in Budapest: Piastri vs. Norris Set for Fierce Battle!

July 29, 2025

Newsletter

  • PRIVACY POLICY
  • TECHNICAL INFORMATION
  • EDITORIAL STATUS
  • TERMS AND CONDITIONS

© 2023 AutoGear - Todos os direitos reservados AutoGear.

No Result
View All Result
  • Latest News
  • AutoGear TV
  • Sustainable Mobility
  • Motorsports
    • Circuits
    • Rally
    • Rally raid
    • WEC
  • English
    • Português
    • Italiano
    • Français
    • Español
    • English
    • Deutsch
    • 日本語

© 2023 AutoGear - Todos os direitos reservados AutoGear.

Enable Notifications OK No thanks