Archive · 23 Aug 2026
Volkswagen Chief Warns Company Faces More Than Critical Situation
Volkswagen says it is facing a very serious business problem.
The company is under pressure from competition around the world, especially from China.
It also says too many cars are being produced in Europe.
Volkswagen is thinking about cutting many jobs to save money.
It has not decided whether to close any factories.
The company says four factories may not make enough money in the 2030s.
It is looking at other industrial uses for some factories, including possible defense-industry work in Osnabrueck.
The IG Metall union says workers have already made painful sacrifices and will resist factory closures.
CEO Oliver Blume said Volkswagen is in a “more than critical” state amid global pressures and Chinese competition.
Volkswagen is considering major job cuts, while plant closures remain under review and no final decision has been made.
Blume said four plants may not be profitable in the 2030s: Emden, Hannover, Zwickau and Neckarsulm.
The company says Europe has annual overproduction of about 500,000 vehicles and is exploring alternative uses for some sites.
Volkswagen has ordered 50,000 job cuts, with agreements already reached with 37,000 employees, while IG Metall opposes factory closures.
- Who
- Volkswagen CEO Oliver Blume, Volkswagen employees and the IG Metall union, led by Christiane Benner.
- What
- Volkswagen is defending a savings plan involving job cuts and possible changes or closures at some plants.
- When
- Blume issued the warning Sunday, ahead of meetings with employees in the coming days.
- Where
- The discussions concern Volkswagen sites in Germany, including Wolfsburg, Zwickau, Emden, Hannover, Neckarsulm and Osnabrueck.
- Why
- Volkswagen cites global economic pressures, Chinese competition, and annual European overproduction of about 500,000 vehicles.
Volkswagen Management
IG Metall Union
Savings and restructuring
Volkswagen Management
Management says major savings are necessary because of global headwinds, Chinese competition and overproduction in Europe.
IG Metall Union
The union says workers have already accepted substantial and painful cuts and should not face further losses without resistance.
Factory closures
Volkswagen Management
Blume says closures would be the last and most expensive solution, but the company cannot currently see how four plants could remain profitable in the 2030s.
IG Metall Union
IG Metall leader Christiane Benner has promised to resist factory closures.
Employee support
Volkswagen Management
Blume says Volkswagen can succeed only if everyone in the company supports the savings plan.
IG Metall Union
The union sharply criticizes management’s approach and says employees are being treated unfairly after earlier sacrifices.
- Company outlook
- Oliver Blume described Volkswagen’s situation as “more than critical.”
- Potentially unprofitable plants
- Volkswagen currently sees no way for plants in Emden, Hannover, Zwickau and Neckarsulm to remain profitable in the 2030s.
- European overproduction
- The company says Europe produces about 500,000 more vehicles per year than needed.
- Planned job cuts
- Volkswagen has ordered 50,000 job cuts.
- Existing agreements
- Agreements have been reached with 37,000 employees.
- Plant closures
- No decision on plant closures has been made.
- Alternative site use
- Volkswagen is in advanced talks with defense-industry companies about using its Osnabrueck factory.