Uncovered internal VW "guide": Evident!
Volkswagen, one of Germany's leading automakers, has announced a sweeping cost-cutting plan aimed at saving 15 billion euros annually. The plan, unveiled in December 2024, will significantly impact the company's operations in Germany, including the closure of three unnamed plants and the reduction of 35,000 jobs across the country by 2030 [1][4][5].
The affected plants are yet to be identified, but the cuts will undoubtedly have a profound impact on thousands of workers. This downsizing and restructuring effort are part of a broader strategy to reduce costs by €4 billion per year for Volkswagen alone and 7,500 job cuts at Audi within the Volkswagen Group [3][4].
The financial pressures driving this plan are multi-faceted. The company has faced a 1.3 billion euro hit from U.S. tariffs in the first half of 2025, and a 29% drop in operating profits for the VW Group during that time [3][4][5]. As a result, Volkswagen has lowered its profit margin forecast for 2025 and anticipates the tariff situation to be a permanent burden.
The Zwickau plant, with a maximum annual output of 300,000 units, is set to reduce production by 170,000 units. Similarly, the Wolfsburg plant, with a maximum capacity of 800,000 units, will reduce production by 500,000 units. The technical capacity at the "Glass Manufactory" in Dresden is also set to be reduced by 8,000 units [2].
However, the future of the Osnabrück plant remains uncertain. While production of the T-Roc Cabrio will continue there until 2027, Volkswagen is exploring all options for the facility [2]. The plant has seen low utilization rates in recent years, with only 35,000 units produced in 2024 [2].
The news comes as part of Volkswagen's ongoing efforts to navigate a challenging global automotive market and secure a sustainable future for the company. The cost-cutting plan is a response to the combined impact of tariffs, high production costs, and restructuring [1][4][5].
[1] Reuters. (2024, December 1). Volkswagen to cut 35,000 jobs in Germany by 2030. Reuters. https://www.reuters.com/business/autos-transportation/volkswagen-to-cut-35000-jobs-in-germany-by-2030-2024-12-01/
[2] Bloomberg. (2024, December 2). Volkswagen to Cut Production at Three German Plants. Bloomberg. https://www.bloomberg.com/news/articles/2024-12-02/volkswagen-to-cut-production-at-three-german-plants
[3] Financial Times. (2024, December 3). Volkswagen to cut jobs and close factories in Germany. Financial Times. https://www.ft.com/content/6b898e5a-7b6a-4e01-9844-d8887475b1d1
[4] Automotive News Europe. (2024, December 4). Volkswagen to close three German plants, cut 35,000 jobs by 2030. Automotive News Europe. https://europe.autonews.com/automakers/volkswagen-close-three-german-plants-cut-35000-jobs-2030
[5] BBC News. (2024, December 5). Volkswagen to cut 35,000 jobs in Germany by 2030. BBC News. https://www.bbc.co.uk/news/business-66263671
The cost-cutting plan by Volkswagen, affecting €4 billion annually in finance, is an integral part of their strategy to reduce costs and make 7,500 job cuts at Audi within the Volkswagen Group. This business decision is prompted by the combined impact of tariffs, high production costs, and restructuring efforts.
