Volkswagen to close four German plants and cut up to 100,000 jobs as auto sector trims output

Volkswagen is weighing the shutdown of four German factories—Hannover, Zwickau, Emden and Neckarsulm—which could affect more than 45,000 workers and lead to as many as 100,000 layoffs. The plan is part of a broader restructuring that would cut the group's investment programme by about 15% (over €130 billion) in the next five years and split the VW brand and its component units into separate entities.

At the same time, Audi is reassessing its mid‑term sales targets, scaling back the expected annual volume from 2.2 million to no more than 2 million vehicles, roughly the output of an entire factory. The reduction reflects a sharp drop in Chinese demand, ongoing US tariff pressures and a weakened global car market, prompting the premium maker to rethink model strategies, including a shift from a fully electric A8 to a plug‑in hybrid.

Both moves highlight the strain on Germany’s premium‑car sector as Chinese competition and market headwinds force major manufacturers to curtail production and cut labour costs.