According to Reuters, the auto giant therefore earmarked around €16 billion ($18.6 billion) for the plan. Sources close to the company hinted that the plan marked Volkswagen’s biggest ever restructuring, citing an existential battle against competition from China, biting tariffs and overcapacity. The plan includes exploring alternatives for four German plants that will eventually run out of models during the next decade and a reduction of around 50,000 more positions than previously planned.
A source told Reuters that phasing out production in Emden and Zwickau would cost about €1 billion each while €2 billion each would be incurred at the Neckarsulm and Hanover plants. About €10 billion would be set aside for costs related to cutting up to 60,000 jobs worldwide. The estimated sum, sources disclosed, will cover phased retirement schemes, severance payments and social support programmes for employees.
According to current plans, as reported by German-language business newspaper, Handelsblatt, production in Emden and Zwickau could cease in 2031, in Hanover in 2032 and in Neckarsulm in 2034. However, the realism of the calculations is a matter of debate. In particular, employee representatives describe them as ‘overly optimistic.’ For example, the closure of the Audi plant in Brussels last year (which employed just over 3,000 people) cost the company around €1.6 billion.
According to the works council’s estimates, 40,000 jobs are at risk at the four Volkswagen plants in Germany that are under threat of closure. It would be recalled that in September this year, Volkswagen’s supervisory board approved a large-scale restructuring plan for the group, which will see a further 50,000 jobs cut.
The most extensive restructuring in the company’s nearly 90-year history also involves exploring alternatives for four German plants and reducing the range of car models. As reported by GMK Centre, at the end of 2025, Volkswagen ceased production of cars at its site in Dresden, marking the first time in the company’s 88-year history that it had shut down operations in Germany.
