Volkswagen Sets End Dates for Vehicle Production at Four German Plants

Production Shifts East

The paper sets out not only when production is to end at each site but also where planned successor models are to be built. The successor to the ID.4 currently made in Emden is to be produced in Mlada Boleslav in the Czech Republic. Production of the next-generation Audi Q4 e-tron is to move from Zwickau to Bratislava in Slovakia. Hanover’s next van family is slated for production in Poznan in Poland, while the model replacing the Audi A8 built in Neckarsulm is to be made in Leipzig.

The affected plants would not close in the short term. Instead, their current models would be phased out without enough new vehicles being assigned to keep the production lines running. For employees, an end to vehicle production would not automatically mean closure of the entire plant.

Volkswagen could repurpose parts of the sites, sell them or seek new partners. The Osnabrück plant, where the group is looking for alternative industrial uses after car production ends, including defense technology, shows one possible route. For vehicle manufacturing, however, the paper sets out firm end dates for the first time.

Cost Cuts Could Keep Production Going

The plan leaves open a slim chance of keeping vehicle manufacturing at the affected sites. Volkswagen says it will consider doing so if the plants can cut factory costs to a competitive level by the end of June 2027. The group has already pointed to substantial cost gaps between its German plants and other European sites.

The implications are particularly stark for Emden and Zwickau. Both were converted for electric-vehicle production at considerable expense. Volkswagen invested around €1.2bn ($1.4bn) in Zwickau, turning it into its first plant devoted entirely to electric vehicles. More than €1bn ($1.2bn) was spent on converting Emden.

Both plants have since been operating well below planned capacity because electric cars have not sold in the volumes needed.

Supervisory Board Weighs Plan

The plans face resistance from employee representatives. IG Metall, Germany’s largest industrial union, accuses the management board of calling existing agreements into question. Union leader Christiane Benner says employees have already made concessions and that entire regions depend on the plants.

The supervisory board is due to discuss the transformation plan on 3 and 4 September. According to media reports, however, management could begin gradually shifting production of individual models even without formal supervisory board approval.

By the end of June 2027, it should become clear whether the plants can cut costs enough to preserve vehicle manufacturing or whether the end dates will stand.