Volkswagen Group is considering the closure of four major German manufacturing plants between 2031 and 2034, according to leaked supervisory board documents, as management pursues sweeping cost reductions across the automaker. Emden, Zwickau, Hanover and Audi Neckarsulm are reportedly included in the proposal as the company confronts declining global sales, a 4.2 percent profit margin and pressure from lower-cost Chinese EVs.
Four German Plants Could Close
According to a report from Reuters, CEO Oliver Blume is expected to push the proposed reductions at a highly contentious September 4 supervisory board meeting.
Under the reported plan, Emden and Zwickau would be the first plants to close, with both facilities scheduled to shut down in 2031. The sites build electric vehicles including the ID.4, ID.7 and Q4 e-tron.
Hanover would follow in 2032. The plant is home to production of the electric ID Buzz. Audi’s Neckarsulm facility, which produces combustion-powered models including the A5 and A6, would then close by 2034.
Volkswagen Faces Falling Sales and Cost Pressures
The proposed restructuring comes as Volkswagen Group expects to sell 8.5 million vehicles globally this year, down from 8.98 million in 2025.
To raise capital and reach a targeted 9 percent profit margin, the leaked documents suggest the company could sell stakes in assets including Ducati, Traton and QuantumScape.
Management is also facing pressure from labor leaders. Union bosses warn that as many as 140,000 jobs could be at risk globally.
Volkswagen is already reducing its workforce, while Blume has said the company’s current trajectory makes it impossible to fund future operations because of costly overcapacity and the burden of U.S. tariffs.
German Manufacturing Footprint Under Pressure
The proposed closures would mark a major restructuring of Volkswagen Group’s German manufacturing footprint. The company is facing pressure from the Porsche-Piech ownership families while management seeks to reduce costs, satisfy shareholders and respond to competition from Chinese automakers.
The plans would put four major German facilities under consideration for closure over a period extending from 2031 through 2034, highlighting the scale of the cost-cutting measures being considered by Volkswagen Group.
