Volkswagen is preparing a recommendation to end production at four German plants between 2031 and 2034, according to a report by WirtschaftsWoche. The proposal would mark one of the most significant steps yet in the carmaker’s restructuring programme, although no final decision has been taken.
The German business magazine reported, citing a supervisory board document, that the first closures would affect Emden and Zwickau in 2031. Hanover would follow in 2032, while the Neckarsulm plant would be the last of the four, with production scheduled to end in 2034.
The proposal is expected to be discussed by Volkswagen’s supervisory board at its meeting on Friday. A company spokesperson told Reuters that Volkswagen does not comment on the contents of internal supervisory board documents.
Four German sites have no clear future beyond 2030
The reported timetable is consistent with warnings issued by Volkswagen’s management in recent days. Chief Financial Officer Arno Antlitz said that the group currently sees no economically viable follow-up production plan for four German sites once their existing model programmes are phased out in the early 2030s.
Management argues that manufacturing costs at some German plants are significantly higher than at comparable facilities elsewhere in Europe. Volkswagen is under pressure to improve margins while dealing with weaker demand in Europe, slower sales in China, trade barriers and growing competition from Asian manufacturers.
Chief Executive Oliver Blume has also told employees that the cost-cutting process is not over. According to Reuters, the group is considering a broader restructuring package that could include additional job cuts, factory closures and carve-outs of selected businesses.
Emden and Zwickau are at the centre of the debate
Emden and Zwickau are among Volkswagen’s key electric-vehicle production sites in Germany, but both lack a confirmed long-term product plan beyond the current decade. Hanover, which produces commercial vehicles, and Audi’s Neckarsulm site face similar uncertainty.
The debate is politically sensitive. Labour representatives and the state of Lower Saxony, one of Volkswagen’s major shareholders, have traditionally opposed large-scale plant closures and compulsory redundancies. IG Metall has already warned that employees would strongly resist any attempt to reopen previous restructuring agreements.
The pressure on Volkswagen reflects a broader challenge facing Germany’s automotive industry. High labour and energy costs, weaker domestic demand and intensifying competition from Chinese carmakers are forcing Europe’s largest auto groups to reassess capacity, investment and employment levels.
No final closure decision yet
The current plan should therefore be treated as a management proposal rather than an approved shutdown programme. The supervisory board still has to consider the recommendation, and negotiations with employee representatives and political stakeholders are likely to be difficult.
If the timetable is approved, however, Volkswagen would begin withdrawing vehicle production from some of its best-known German sites from 2031, reshaping the group’s industrial footprint over the following three years.
Sources: Reuters, WirtschaftsWoche.
