Volkswagen to close four plants in Germany

Germany's Volkswagen Group is going through one of the most difficult periods in its history. This was reported by Zamin.uz.

According to sources from the Reuters agency, the auto giant is considering closing four major plants in Germany and laying off nearly 100,000 employees. These drastic measures are aimed at maintaining the company's position in the global market and reducing costs.

Currently, Volkswagen plants in the cities of Hanover, Zwickau, and Emden, as well as the enterprise in Neckarsulm belonging to the Audi brand, are at risk. According to preliminary calculations, the closure of these plants alone will lead to the loss of more than 45,000 jobs.

If previously planned reductions are also added, the number of unemployed employees could reach 100,000. This is expected to be one of the largest restructuring processes in the global automotive industry.

Main causes of the crisis and external pressure Volkswagen management explains such radical steps by the deterioration of the market situation. The group faced serious pressure in several directions simultaneously.

First, Chinese automakers, particularly brands like BYD, are squeezing Volkswagen out not only in the Asian market but also in Europe. Second, high tariffs imposed by the USA and a decrease in demand for cars within Europe itself have further aggravated the situation.

The company's investment plans for the next five years are also being reviewed. According to reports, the amount of funds allocated for development is expected to be reduced by 15 percent, significantly decreasing from the previous plan to around 130 billion euros.

Additionally, the issue of separating the Volkswagen brand and the components production departments into separate structures is being discussed. Social discontent and political resistance These plans have led to great discontent in Germany.

The Volkswagen production council and the country's largest trade union, IG Metall, announced that they will fight to the end to save the plants. Furthermore, the government of the federal state of Lower Saxony, which is one of the group's major shareholders, is also strongly opposed to the closure of the enterprises.

This news is also significant for Uzbek consumers, as the Volkswagen brand is officially presented in our country's market and its models, especially electric vehicles, are becoming more popular. A reduction in production capacities in Germany will inevitably affect the global supply chain and the brand's future strategy.

By the end of the 2025 financial year, a total of more than 667,000 people worked within the group's system, 43 percent of whom are located specifically in Germany. Company management is currently seeking a way out of this difficult situation and developing new strategies.