Volkswagen plans up to 100,000 layoffs and plant closures amid China‑Europe production shift

Volkswagen has unveiled an €11 billion restructuring plan that could cut as many as 100,000 jobs and lead to the closure of up to four factories in Germany, including sites in Ansbach, Jübkau, Emden and Neckarsulm. The plan is set to be discussed at a supervisory board meeting on 9 July.

The company is also looking to shift some models originally developed for the Chinese market back to European production, a proposal supported by the Lower Saxony state government that holds a 20 % stake in VW.

Union leader Stavros Chrystidis warned that cheap Chinese cars are eroding market share and urged the EU to act, saying, "We need the EU to require joint ventures with European partners, just as the Chinese do."

In addition to plant cuts, VW will eliminate about 5,500 managerial positions and has introduced stricter rules for company‑car use, limiting fuel types and wash expenses to curb costs.