VW is said to be planning the closure of four German factories, with electric vehicle production being particularly affected.

Image: VW

According to a report by WirtschaftsWoche, Volkswagen Group management plans to cease production at four German facilities between 2031 and 2034. A board document suggests that the factories in Emden and Zwickau could stop production as early as 2031. Hannover might follow in 2032, with the Audi factory in Neckarsulm closing in 2034.

The affected plants are currently manufacturing various models, especially electric ones. In Emden, only the electric vehicles VW ID.4 and ID.7 are produced, while Zwickau manufactures the VW ID.3, the Cupra Born, and the Audi Q4 e-tron. Volkswagen Nutzfahrzeuge’s headquarters in Hannover is responsible for the electric bus ID. Buzz, among other products. In Neckarsulm, the combustion engine models A5 and A6 as well as the sedan A8 are produced, with their manufacturing ending this year.

In addition to shutting down factories, the conglomerate is said to be considering selling off parts of its business. According to the Wirtschaftswoche, the document mentions the potential sale or reduction of stakes in companies such as Ducati, Traton, Gotion, QuantumScape, and SGL Carbon. The conglomerate’s global vehicle sales for 2026 are estimated at 8.5 million units, down from 8.98 million last year. This represents a significant drop from the previous record high of 11,017,621 vehicles produced in 2018.

A Volkswagen spokesperson told Reuters that the company would not comment on the contents of board documents. According to the news agency, CEO Oliver Blume will make another attempt at the board meeting on September 4 to push through drastic cuts to boost profitability. The manager argues that future operations are unfeasible due to low profitability, Chinese competition, overcapacity in Germany, and U.S. tariff costs.

Workers’ representatives warn of a risk to up to 140,000 jobs. This figure includes the already agreed 50,000 cuts in Germany, an additional 50,000 possible job losses globally, and about 40,000 jobs at the four German factories.

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Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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