Volkswagen is considering a plan to phase out vehicle production at four of its German manufacturing plants between 2031 and 2034, in what would represent a major restructuring of the automaker’s domestic operations.
German business publication WirtschaftsWoche reported on Tuesday that Volkswagen’s management board intends to propose ending production at the facilities in Emden, Zwickau, Hanover and Neckarsulm over the next decade.
According to the report, which cited a paper prepared for Volkswagen’s supervisory board, production at the Emden and Zwickau plants is expected to end in 2031. The Hanover facility would follow in 2032, while production at Neckarsulm is scheduled to cease in 2034.
The proposed timeline is expected to be presented to Volkswagen’s supervisory board, which is due to meet on Friday.
The potential closures come as Volkswagen continues to grapple with intense competition, high production costs and major changes in the global automotive industry, particularly the transition towards electric vehicles.
Germany remains central to Volkswagen’s manufacturing network, making any decision to reduce production at several domestic facilities politically and economically sensitive. The plants support thousands of jobs directly and indirectly and play an important role in the economies of the regions where they are located.
A Volkswagen spokesperson declined to comment on the reported plans, saying the company does not comment on the contents of supervisory board documents.
The reported proposal is part of broader efforts by the German automaker to reshape its operations and improve efficiency as it faces pressure to reduce costs and remain competitive in an increasingly challenging market.
Volkswagen has previously warned of difficult conditions in its home market, where manufacturers are confronting elevated labour and energy costs, weaker demand and growing competition from international electric-vehicle producers.
If approved, the proposed timeline would mean the four facilities continue operating for several more years before production is gradually brought to an end. The move would nevertheless mark a significant shift in Volkswagen’s longstanding manufacturing footprint in Germany.
Further details are expected to emerge after the supervisory board meeting, although any final decision would likely involve negotiations over jobs, production capacity and the future use of the affected sites.