The fourth-largest city of Saxony, cradle of Audi’s origins, and a manufacturing hub
Volkswagen has signalled a major restructuring plan, with reports that the group is weighing further job cuts and plant closures in Germany to cut costs and counter Chinese competition. The board meeting on July 9 will review potential closures of Hanover, Zwickau, Emden, and Neckarsulm, as part of a broader program to reduce costs and boost profitability.
Volkswagen has presented a restructuring plan that will cut model lines by up to half and reduce production capacity to about 9 million vehicles a year. Chief executive Oliver Blume has said the group faces a 20% cost disadvantage to rivals and has proposed a "theoretical" further 50,000 job reductions on top of earlier cuts, prompting union protests and board resistance.
Volkswagen has signaled a major restructuring, with plans to cut up to 100,000 jobs as it faces tariff costs and competition from Chinese brands. Porsche SE reiterates support for management, stressing competitiveness as the company navigates a historic crossroads.
Volkswagen has agreed to sell its Osnabrück factory to Aurelius Capital and the state of Lower Saxony and has announced an initial partnership with Rafael Advanced Defence Systems to produce air‑defence components from mid‑2027. The deal will secure at least 1,200 jobs and forms part of VW's broader Future Plan 2030 restructuring and 100,000 job reductions.