Volkswagen is considering closing four German factories and cutting up to 100,000 jobs due to pressure from Chinese carmakers, according to sources. The proposed plan has been shared with the supervisory board and will be discussed on July 9.
The closures could put over 45,000 jobs at risk, in addition to the 50,000 job cuts already agreed upon in late 2024. Volkswagen's CEO Oliver Blume presented the restructuring plan to senior executives to build support.
The company plans to reduce investment spending by 15% over five years and separate its passenger car business and parts operations into different entities. Labour unions and the German state of Lower Saxony oppose the plans, which could lead to far-reaching changes for the 89-year-old company.
