Volkswagen Plans to Halve Model Lineup, Cut Capacity to Nine Million Vehicles, and Consider Closing Four German Plants

Volkswagen plans to cut its model lineup by up to half and reduce annual production capacity to nine million vehicles from 10 million. The German automaker made the announcement after a supervisory board meeting on July 9, 2025, in Wolfsburg. Profit margins halved between 2021 and 2025.

CEO Oliver Blume said the global situation had continued to deteriorate over the past 12 months and that the company was acting now. Reports indicate the measures could result in the loss of 100,000 jobs. Blume is considering closing four German plants in Hanover, Emden, Zwickau and Audi's Neckarsulm plant.

IG Metall claimed 400 people demonstrated in Wolfsburg. Daniela Cavallo, head of Volkswagen's works council, said the blame for the company's issues should not fall on the workers and that "great fear and deep uncertainty" had been spreading across the business. The works council called on Blume to address speculation around job cuts and plant closures.

Ferdinand Dudenhoeffer, a German automotive industry analyst, said no details had been provided on production or employment and that uncertainty remained, which was not good for customers, employees and investors. Volkswagen holds a 25.8 per cent market share in Europe, of which 10.1 per cent belongs to the Volkswagen brand.

It sold more than 1.5 million vehicles in the European Union, European Free Trade Association and the UK between January and the end of May 2026.

Sales in Europe fell by four per cent year-on-year.