Volkswagen Factory Closures in Germany

(Reuters) – Volkswagen plans to shut at least three factories in Germany, the carmaker's works council head stated on Monday. Specific plants were not identified, but this could lead to thousands of layoffs.

Volkswagen (ETR: VOWG_p) announced in early September its intention to end its job security program, active since 1994, which has prevented job cuts until 2029. This decision comes amid increasing competition from Asian rivals.

Germany's powerful union IG Metall identified factories potentially affected by the end of this job security scheme. Analysts have previously mentioned VW sites in Osnabrueck and Dresden as targets for closure.

Affected Factories

BRUNSWICK

Volkswagen's oldest plant, employing about 7,400 workers as of 2022, is located in a city of around 250,000 people. It produces components like axles and battery systems, including parts for electric vehicles since 2019.

EMDEN

Founded in 1964, this plant, initially focused on the VW Beetle, now produces models like the VW Passat and the ID.4 electric car. It has over 8,000 employees and manufactures roughly 180,000 vehicles annually.

HANOVER

With around 14,000 staff, this factory produces the sixth-generation T-Series camper van and parts like cylinder heads. It is notable for its production of the VW 'Bulli' since 1956.

KASSEL

As VW's largest components plant worldwide, Kassel produces over four million transmissions annually and employs about 16,500 individuals, making it the largest employer in northern Hesse.

SALZGITTER

Opened in 1970, this plant employs around 7,500 workers and focuses on engine variants and electric vehicle components. A significant investment was made in 2021 to convert it into a major battery cell plant.

WOLFSBURG

Volkswagen’s headquarters and its largest plant, Wolfsburg covers an area comparable to 910 soccer pitches, employing approximately 70,000 people and produced nearly half a million vehicles in 2023.

DRESDEN

Established in 2001, this factory previously produced luxury vehicles and has since shifted to electric vehicle manufacturing, employing around 340 people as of December 2023.

OSNABRUECK

After taking over a former Karmann factory in 2009, Volkswagen now produces vehicles and body parts here. However, production issues loom due to Porsche's shift of the next Cayman and Boxster generation to Stuttgart.

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