Volkswagen's restructuring stalls without plant closures amid rising EV demand

Volkswagen announced that a plan to close four German factories will not be implemented after its supervisory board rejected the closures. The company will keep its broader future‑concept, including job cuts in the six‑figure range, but will seek other measures such as capacity adjustments, shift models and product mix changes. The decision left investors uneasy; the preferred share fell to €73.12, near its 52‑week low and down about 30% since the start of the year.

At the same time, German demand for electric cars is accelerating. Recent KBA data show that electric vehicles accounted for 30.7% of new registrations in North‑Rhine Westphalia in June, far above the 20.3% average for the previous year. High EV uptake is also reported in Rheinland‑Pfalz, Schleswig‑Holstein, Lower Saxony, Bremen and Baden‑Württemberg, while regions such as Hamburg, Saxony‑Anhalt and Bavaria lag behind. Volkswagen views the strengthening market as a positive signal for its long‑term electrification strategy.