The German conglomerate, currently in crisis, is on the verge of a large-scale corporate reorganization. The future operations of four plants in Germany are in question.
Many automakers continue to face serious difficulties today, and the Volkswagen Group is no exception. As early as spring 2026, it became known that VW had acknowledged its own lack of viability: it was then revealed that, according to the board of management and the supervisory board, the company's current business model is not aligned with the rapidly changing reality.
As Kolesa.ru previously reported, the current crisis began in 2023 due to a global slowdown in demand for electric vehicles: the bet on full electrification did not pay off, including for VW. Additionally, problems in the IT division Cariad contributed to the dire situation: it failed to develop a new generation of integrated operating systems for models across all the group's brands in a timely manner, leading to delayed launches of key new products. Furthermore, the weakening of its position in the Chinese market due to competition from increasingly strong local manufacturers added to the "crisis pot."
It appears that Volkswagen is now developing a strategy to emerge from the current crisis. The German publication Manager Magazine has reported on the specific steps the group's management intends to take: at this point, the focus is on reducing costs. It is reported that the planned reorganization could lead to the reduction of up to 100,000 employees worldwide. It is not yet clear by what date this "thinning of the ranks" is planned.
Earlier, Volkswagen had already announced plans to cut 50,000 jobs in Germany at plants of its core brands – Volkswagen, Audi, Porsche, as well as in the IT division Cariad. This "workforce optimization" is planned to be carried out by the end of the decade. It is likely that these 50,000 employees are included in the plans to cut 100,000 jobs worldwide.
According to the German publication, VW's strategy to exit the crisis (following a 44% drop in profit for 2025 and intensified competition) involves reducing capital expenditure, a series of administrative decisions, changes to the overall organization of the group, and the closure of several plants located in Germany.
It is reported that Volkswagen production sites in Hanover, Emden, and Zwickau, as well as the Audi plant in Neckarsulm (the brand is also part of the VW Group), could completely cease vehicle production. The magazine noted that this is not about an immediate closure of the plants, but a gradual one: upon the completion of the life cycles of the models produced there.
According to rumors, the group may also spin off the core VW brand and its component manufacturing division into independent units. It is assumed that this will simplify the company's management structure in the future and provide it with more flexibility on a number of important issues. The company has not yet officially confirmed the information about the strategy to exit the current crisis.
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