Volkswagen considers selling 9,500 properties to fund EV transition

Volkswagen is considering major divestments of its real estate holdings to fund its transition toward electric vehicles and software development. The company is evaluating several options for its subsidiary, VW Immobilien, which holds a book value of approximately 1.02 billion euros. These assets include roughly 9,500 apartments and 118 commercial properties. Potential strategies include selling individual packages, selling the subsidiary entirely, or implementing sale-and-leaseback agreements.

This financial restructuring comes amid a broader crisis for the automotive group, characterized by declining sales and intense competition from Chinese electric vehicle manufacturers. The company faces significant cost-cutting pressures, with plans to reduce more than 35,000 jobs at German locations by 2030.

The economic implications extend heavily to Wolfsburg, the city founded as a worker settlement for the plant. As the city's largest employer, Volkswagen's instability threatens local tax revenues, housing markets, and purchasing power. Similar pressures are being felt in Ingolstadt, where Audi's headquarters is located, with projected trade tax revenues expected to drop significantly by 2025.