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According to Motor1, Volkswagen brand CEO Thomas Schaefer shared that the group would need 3-4 years to restructure.
Shutting Down Factories
In an interview with the German publication Welt am Sonntag, Thomas Schaefer candidly admitted that Volkswagen needed to reduce vehicle production and adapt to the new reality.
The Volkswagen executive further shared that the company had not found any other way to achieve its goals without shutting down at least one factory.
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Volkswagen’s Osnabrück factory is one of the production sites under consideration for closure. Photo: Volkswagen. |
Two of Volkswagen’s production facilities in Germany are under consideration for closure.
The Osnabrück factory currently produces the Porsche 718 Cayman and 718 Boxster, which will cease production next year. The Volkswagen T-Roc Cabriolet is also manufactured at this plant.
Volkswagen also plans to shut down the Transparent Factory, which is responsible for producing the Volkswagen ID.3 electric car. According to Motor1, this factory is smaller and only supplements the ID.3 production for the main facility in Zwickau.
Notably, the factory closures could be accompanied by job cuts. Speaking to Welt am Sonntag, Thomas Schaefer stated that typical options like voluntary departure or early retirement for employees would not be sufficient for Volkswagen to turn the situation around.
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Volkswagen is highly dependent on the Chinese market. Photo: Volkswagen. |
According to YiCal Global, Volkswagen sold 2.1 million cars to Chinese customers in the first nine months of the year, a 10% decrease compared to the same period last year.
Volkswagen’s profit in the third quarter was €1.6 billion, or approximately $1.7 billion, a 64% drop from the previous year.
An executive board member affirmed that the group’s sales and profit decline in the third quarter was mainly due to the Chinese market.
In China, the Volkswagen-SAIC Motor joint venture also closed its first factory in 2023.
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