VW Restructuring: Blume Against Plant Closures | allfacts360
Volkswagen CEO Blume Seeks a Path Without Plant Closures in Interview
Wolfsburg, July 12, 2026
Foto: Marco Prosch, Porsche AG, überreicht durch Diana Sänger, Public Relations and Press an Norbert Bangert / Wikimedia Commons / CC0
Summary
Volkswagen CEO Oliver Blume has called plant closures unnecessary in the dispute over the future of four German plants and pointed to alternative solutions. At the same time, he acknowledged that the group must continue to cut costs, while the works council and supervisory board have opposed a tougher savings package.
Wolfsburg, July 12, 2026
Volkswagen Group CEO Oliver Blume has described plant closures as avoidable in the struggle over the future of four German plants while simultaneously announcing further cost reductions.
In an interview with Bild am Sonntag, Blume said there were smarter solutions than closing plants. "Es gibt intelligentere Lösungen, als Werke zu schließen," said the CEO of the German Volkswagen Group. He thereby addressed the concerns of roughly 40,000 employees at the Zwickau, Emden, Neckarsulm, and Hanover sites, which are considered at risk in the ongoing restructuring.
Blume also pointed to progress in reducing factory costs in Germany. "Unsere Fabrikkosten in Deutschland konnten wir allein im vergangenen Jahr um durchschnittlich 20 Prozent verbessern. Ein starker Fortschritt," he said. These savings were proof that the group could boost its competitiveness without resorting to drastic measures such as plant closures.
Cost Reductions and Model Range
At the same time, Blume acknowledged that Volkswagen must continue to reduce its costs. "Unsere Produkte sind sehr beliebt – wir verdienen nur zu wenig Geld damit. Deshalb müssen wir unsere Kosten weiter reduzieren. In allen Kostenarten," he said. The group CEO announced plans to cut overcapacity and gradually reduce the model range by up to 50 percent.
Specifically, Volkswagen plans to lower production capacity by one million vehicles per year by 2030, to nine million vehicles annually thereafter. The number of models is to be halved by 2035 to make production more cost-efficient and effective. "Zukünftig wollen wir den Absatz pro Modell steigern. Dafür strahlen wir konsequent unser Produkt-Portfolio," said Blume.
Scale of Job Cuts
The group employs more than 650,000 people worldwide. The CEO left open how many of them could lose their jobs in the coming years. According to media reports, up to 120,000 positions worldwide could be affected; Manager Magazin spoke of up to 100,000 positions – twice as many as previously planned. A cut of 50,000 positions has already been decided.
Cuts are also coming at the management level: by 2030, 5,000 of the group's 21,000 management positions worldwide are to be eliminated. Blume emphasized that models from the VW, Skoda, and Seat brands should overlap less in the future in order to avoid duplicate structures.
Sales Problems and China Crisis
Despite the difficult situation, Blume pointed to positive signals from the electric car business. "Von unserer neuen Einstiegsfamilie um den ID. Polo haben wir über 50.000 Autos in den ersten vier Wochen verkauft," he said. Volkswagen sees itself as "klarer Marktführer in Europa – bei Verbrennern und vollelektrischen Fahrzeugen." However, analyst Frank Schwope had pointed out the weak sales figures to NDR Niedersachsen: "Im zweiten Quartal sah es wirklich sehr schlecht aus, weltweit minus 9 Prozent," said Schwope. The slump in China was particularly severe: "In China, dem wichtigsten Markt, minus 37 Prozent. Das ist schon sehr extrem."
The four sites considered at risk are spread across several federal states: the VW plant in Zwickau (Saxony), the VW plant in Emden (Lower Saxony), the Audi plant in Neckarsulm (Baden-Württemberg), and the commercial vehicle plant in Hanover (Lower Saxony). According to earlier statements, Volkswagen is examining whether to locate defense companies at these sites or to build models developed in China there.
Blume called on politicians to act. "Uns geht es dabei immer auch um den Industriestandort Deutschland. Alle müssen anpacken. Transformation ist eine gesellschaftliche Gemeinschaftsaufgabe," he said. The transformation was a joint task affecting everyone.
Supervisory Board and Works Council
The situation within the company remains tense. As the Süddeutsche Zeitung reported, citing group circles, employee representatives and representatives of Lower Saxony on the supervisory board voted against the savings package. According to the report, Blume failed to push through a more extensive savings program.
The works council sharply criticized Blume. According to the dpa agency, the works council sees a significant loss of confidence among the workforce in the company's leadership. The works council had set Blume a deadline of Friday to take a position before the workforce. That deadline had passed without Blume addressing the employees directly.
In a works council statement issued on Saturday, it said that Blume had informed management on Friday about details regarding the likely end of German plants and a massively expanded job-cutting program, but had withheld this information from affected employees outside of management. "Wir verurteilen scharf, dass er gleichzeitig den zehntausenden betroffenen Beschäftigten außerhalb des Managements diese Informationen weiterhin vorenthält," the works council stated.
Outlook After the Summer Break
The works council announced that it would convene workforce meetings after the end of the summer break, which ends on August 7. At these meetings, the group CEO must answer the employees directly – and not only at the main plant in Wolfsburg. Blume had also let the deadline pass to inform the workforce about possible site closures.
After the supervisory board meeting in the middle of the week, Volkswagen issued a statement that mentioned changes and cuts but contained no concrete announcements on plant closures or a possible expansion of job cuts. The group did not comment on media reports about further job reductions and possible plant closures.
Blume described the economic environment as exceptionally challenging. "Unser Umfeld war noch nie so anspruchsvoll und risikobehaftet wie heute. Geopolitische Spannungen, Handelsbarrieren, Regulatorik, Marktumbrüche und intensive Konkurrenz," he said. These factors made the restructuring of the group unavoidable.
The coming weeks are considered decisive for the further course. Observers expect Volkswagen to present more concrete steps after the summer break – both regarding the future of the four at-risk plants and the extent of worldwide job cuts. Until then, uncertainty remains for employees at the Zwickau, Emden, Neckarsulm, and Hanover sites as well as for the entire workforce of the Volkswagen Group.
Questions & Answers
Which Volkswagen plants are threatened by the restructuring?
The VW plants in Zwickau and Emden, the Audi plant in Neckarsulm, and the commercial vehicle plant in Hanover are considered at risk. Around 40,000 people work at these four sites.
How many jobs could be cut worldwide at Volkswagen?
According to media reports, up to 120,000 positions worldwide could be affected; Manager Magazin spoke of up to 100,000 positions. A cut of 50,000 positions has already been decided, and around 5,000 management positions are to be eliminated by 2030.
Why did Blume's savings package come under pressure in the supervisory board?
As the Süddeutsche Zeitung reported, citing group circles, employee representatives and representatives of Lower Saxony on the supervisory board voted against the savings package. According to the report, Blume failed to push through a more extensive savings program.
