VW may close four factories to adapt to the future, report says

Now we have some idea what that reduction in complexity might look like.

The report, confirmed by Reuters, says that another 45,000 jobs would go. That would reduce VW’s total workforce by around 15 percent; currently, the automaker employs more than 650,000 people across the group’s 10 car brands and other divisions.

VW Group is part-owned by the state of Lower Saxony, which, together with strong unions, has always made the thought of factory closures in Germany anathema. But VW Group CEO Oliver Blume will present a plan to the company’s board next month that outlines just such a thing, according to the report. Volkswagen plants in Hannover, Zwickau, and Emden, as well as Audi’s factory in Neckarsulm, are all in the crosshairs.

“Please understand that we do not comment on internal, confidential documents. The underlying matters will be discussed and approved in the respective committees. We will not pre-empt this process,” a VW spokesperson told Ars.

“The Executive Board has repeatedly stated that our current business model no longer works across all brands: developing cars in Germany, producing them in Europe and exporting them to the world… The entire Group has to become significantly more competitive,” it said.