VW to close four German plants by 2034
Volkswagen's board will recommend closing four German factories from 2031 to 2034, shifting production of new models to other group plants.
Volkswagen's management board is preparing to recommend a phased end to manufacturing at four German plants, according to an internal document seen by the German business publication WirtschaftsWoche. The plan calls for output to cease at the Emden and Zwickau sites in 2031, followed by Hanover in 2032 and Neckarsulm in 2034.
Each closure is directly linked to the transfer of a successor model's production to another factory in Volkswagen's global production network. The document, titled "Report on the Supervisory Board's Concept Resolution, September 3/4, 2026," was prepared for an upcoming vote by the company's supervisory board.
Model transfers drive plant closures
Under the reported plan, production at the Emden plant would finish in 2031 when assembly of the successor to the ID.4, referred to as the ID. Tiguan, moves to Škoda's facility in Mladá Boleslav, Czech Republic. Zwickau's exit the same year is tied to the relocation of the replacement for the Audi Q4 e-tron to Bratislava, Slovakia.
The Hanover factory would close in 2032 alongside the move of its B-Space (T8) electric van production to Poznań, Poland. Finally, Neckarsulm's wind-down in 2034 is connected to the transfer of A8 successor production to Leipzig, Germany.
| Plant | Closure Year | Successor Model | New Production Location |
|---|---|---|---|
| Emden | 2031 | ID. Tiguan (ID.4 successor) | Mladá Boleslav, Czech Republic |
| Zwickau | 2031 | Q4 e-tron replacement | Bratislava, Slovakia |
| Hanover | 2032 | B-Space (T8) electric van | Poznań, Poland |
| Neckarsulm | 2034 | A8 successor | Leipzig, Germany |
Rationale for restructuring
The internal document states that Volkswagen's management board unanimously supported a concept for the overall transformation of the VW Group. It argues that the restructuring is intended to help stabilise VW’s credit rating and the associated capital and refinancing costs.
The report contends that the existing business models and structures are no longer sufficient to ensure the long-term competitiveness and profitability of the VW Group. It also points to an expected decline in group-wide vehicle deliveries, with around 8.5 million units forecast for 2026.
Broader cost-cutting context
Volkswagen's plant closure plan fits within a broader cost-cutting program. In July, the company indicated it planned to reduce its model range by as much as half. Last month, CEO Oliver Blume said growing pressure across the automotive sector would necessitate further cost cuts as the company entered weeks of negotiations over a restructuring program.
Employee representatives have warned that up to 140,000 roles could ultimately be affected by the wider restructuring. This figure comprises roughly 50,000 job cuts already agreed upon in Germany, a further 50,000 positions management has indicated may be needed worldwide, and around 40,000 jobs at the four German factories named in the closure plan.
