VW in the crisis: shocking production cuts and factory closures!

VW in the crisis: shocking production cuts and factory closures!

Wolfsburg, Deutschland - Volkswagen faces a crucial turn that could not only influence the future of the company, but also thousands of jobs. Current information shows that the automotive giant has developed a drastic savings plan due to internal challenges. From December 2024, the production capacities in several works are to be severely restricted. This includes a "strike list" with various affected locations, such as news38

The affected works are mainly in Wolfsburg, Osnabrück, Zwickau and the glass manufactory in Dresden. In Wolfsburg, a reduction is expected by 500,000 units, the maximum capacity is 800,000. In 2024, however, only 523,000 vehicles were produced. The work in Osnabrück also provides for a reduction of 56,000 units, while in Zwickau a reduction of 170,000 units cannot be averted. The future of the glass factory in Dresden is also uncertain, since the technical capacity is to decrease by 8,000 units.

difficulties in production

The automotive group is faced with great challenges, especially when transitioning to electromobility. According to Tagesschau the factory utilization is low and the costs increase. Around 70,000 employees are currently working at the main location Wolfsburg, almost 40,000 of them in the administration. In order to get the personnel costs under control, Volkswagen plans to shorten 20% of the administrative offices. The production of the new electrical models, such as ID.3, is currently on the brink due to a lack of demand.

The uncertainty among employees grows. Low utilization in many works, the deletion of night shifts and a possibly impending plant closure lead to a tense climate. Last but not least, the VW works council in Lower Saxony is strongly against possible location closings, which underlines the importance of Volkswagen in the region.

market adjustment and future views

The challenge is not only with VW. The entire European automotive sector is under pressure. As the Zürcher Presse , sunken demand and high investments in electric vehicles are problematic for many manufacturers. Volkswagen expects sales to drop by 500,000 vehicles, which corresponds to the production capacity of at least two works. "It is important to make these decisions now," said CEO Oliver Blume.

The closings could also bring political challenges for the federal government, especially after the election defeats. It remains to be seen how VW will manage the upcoming changes and whether the company can adapt to the requirements of the competition, especially by cheaper electric cars from China. For Volkswagen, the next one to two years are decisive.