Volkswagen chief executive Oliver Blume says there are smarter alternatives to closing factories, as media reports suggest the automaker could shutter four German sites by 2034 and eliminate as many as 100,000 jobs worldwide — double the number previously planned.
The plants reportedly at risk are in Hannover, Emden, Zwickau, and the Audi facility in Neckarsulm. Blume noted that a cost-cutting push reduced German production expenses by an average of 20 percent last year. The company also plans to halve its model range and cut trim levels by 75 percent in what management calls its most sweeping restructuring ever.
The pressure is underscored by weak sales: global deliveries fell nearly 9 percent to 2.08 million vehicles in the second quarter of 2026, with China dropping more than a third. The works council has sharply criticized Blume for informing management of factory closure plans before affected workers, having set a July 10 deadline for him to address staff directly.