Volkswagen is reportedly planning to lay off up to 100,000 employees and shutter four factories in Germany as part of a major cost-cutting exercise. The plan includes the closure of three Volkswagen and one Audi manufacturing facilities, all of which currently produce mostly electric vehicles, but some of which also produce internal combustion engines and cars.
The proposal, outlined by Reuters, would see the four factories closed only after current production of models being made at the facility concludes. In addition to the closures, the proposal reportedly targets major cuts to both investment and general overhead costs, each of which would potentially save the company over $10 billion.
View Price on AmazonThese changes, along with reported reductions in total manufacturing output and cuts in overhead costs that aim to save more than $12 billion by 2030, would help VW greatly reduce costs as it adjusts to a global struggle on multiple fronts against President Donald Trump's tariffs on cars coming to the United States, a rapidly-changing Chinese market, flattening interest in electric vehicles, and broader global automotive supply chain issues dating back to the COVID-19 pandemic.
Given both the VW brand and the larger Volkswagen Group's struggles under these conditions, the serious cuts might be necessary to ensure the survival of Europe's largest automaker as it currently exists. The company has already started to slice more than 50,000 jobs and 1 million cars' worth of annual production as part of its cost-cutting exercise.
Source: roadandtrack.com
