According to a recent media report, Volkswagen forecasts that the cost associated with eliminating approximately 60,000 jobs and the possible closure of four German manufacturing sites could total around 16 billion euros. This estimate stems from a decision made by the company’s supervisory board last Thursday, supported by additional internal documents referenced by the publication.
The Wolfsburg-based automotive group has budgeted two billion euros each for the potential end of production at four distinct locations. For the Zwickau and Emden plants, these costs relate to the planned cessation of car production by 2031. Hannover (VW Commercial Vehicles, scheduled for 2032) and Neckarsulm (Audi, scheduled for 2034) are slated to cost roughly two billion euros apiece. While these four sites are currently under review as part of the company’s savings program, a definitive decision on their closure has not yet been made, and alternative uses are being explored.
In addition to facility closures, Volkswagen is planning to deploy up to 10 billion euros by 2030 to manage the layoff of about 60,000 employees. These funds are intended to cover expenses such as early retirement schemes, severance packages, and social transition plans. Approximately half of these job cuts will take place within Germany.
Cumulatively, the costs Volkswagen has calculated for both plant closures and staff reductions amount to a potential 16 billion euros. However, employee representatives warn that if the plants are indeed shut down, the actual costs could be significantly higher. A union official described the corporate calculation as “ridiculously low,” maintaining that the realistic expenditure is closer to double the figure provided by VW.
