BERLIN — Proposed Volkswagen German plant closures could affect more than 45,000 workers as the automaker considers a restructuring that may raise total job reductions to about 100,000 worldwide.

Reuters reported on Friday, June 26, 2026, that Volkswagen is reviewing possible closures of plants in Hanover, Zwickau and Emden, as well as Audi’s factory in Neckarsulm. The proposals have not been approved.

Volkswagen declined to discuss confidential documents but acknowledged that major changes were needed across the group.

Volkswagen German Plant Closures Remain Under Review

The four factories employ more than 45,000 people. Their possible closure would come on top of approximately 50,000 job reductions already planned, potentially bringing the total to about 100,000.

Volkswagen is also reportedly considering cutting five-year investment spending by roughly 15% to slightly more than 130 billion euros. The supervisory board is expected to examine the restructuring proposals on Thursday, July 9, 2026.

Chinese EV Competition Adds Pressure

Chief Executive Oliver Blume is seeking to lower costs as Volkswagen faces U.S. tariffs, weaker European demand and stronger competition from Chinese automakers.

Volkswagen lost its position as China’s top-selling automaker to BYD in 2024 and fell behind Geely in 2025. Chinese brands have also been expanding their presence in Europe.

Volkswagen’s works council and the IG Metall union have pledged to oppose potential plant closures. Lower Saxony, Volkswagen’s second-largest shareholder, also has significant influence over major company decisions.

No final decision has been announced. The July board review will be closely watched because any closures would affect Volkswagen workers, regional suppliers and Germany’s broader automotive economy.