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[BUSINESS] · Germany, China · 100 sources

Volkswagen announces major production cuts and model reductions, risking up to 100,000 jobs

Volkswagen said it will slash production and cut roughly half of its model lineup, a move that could put up to 100,000 employees at risk, including possible factory closures. The company has not commented on specific layoffs, but industry analysts warn of a sweeping restructuring that may affect several sites across Germany.

The cuts come as German car sales slump dramatically, with Volkswagen, BMW and Mercedes seeing sales drops of more than 30 % in China. Analysts link the crisis to long‑standing EU regulatory policies that favoured diesel and heavy SUVs, delaying a smoother transition to electric mobility and leaving European manufacturers at a competitive disadvantage against Chinese rivals.

The wider European auto sector is also under pressure, with the Stoxx Europe 600 Automobiles & Parts index near historic lows. The restructuring is viewed as a response to both regulatory legacy issues and the accelerating shift toward electric vehicles.

Sources

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