Volkswagen (VW) is reportedly planning to close three plants in Germany as part of its strategy to cut costs and focus on electric vehicle (EV) production, which could lead to thousands of job cuts. The affected plants, which primarily produce components for internal combustion engine (ICE) vehicles, are expected to see reduced output as the company pivots to EV production in response to stricter emissions regulations and the EU’s target to phase out ICE vehicles by 2035.
Volkswagen has been undergoing a major restructuring effort to remain competitive in the rapidly changing auto industry, investing billions in EV technology and related infrastructure. However, the shift from traditional vehicle production is challenging for legacy automakers, as it often involves significant workforce adjustments. VW’s focus on streamlining operations and reducing costs aligns with similar moves by other automakers grappling with the transition to EVs, though it comes with the difficult trade-off of job reductions, especially in ICE production roles.
These plans are still reportedly under discussion with VW’s labor unions, which are influential in Germany and are expected to negotiate terms to mitigate the impact on employees.
