Competitive pressure in the European automotive industry led the Volkswagen Group to take comprehensive savings steps. According to reports in the German press, the company plans to significantly reduce its global employment. CEO Oliver Blume emphasized in his message to employees that costs are 20 percent higher than competitors.
As part of the restructuring, Volkswagen's Zwickau and Emden factories, Audi's Neckarsulm plant and the commercial vehicle factory in Hannover are at risk of closure. The company's net profit decreased from 22.6 billion euros in 2023 to 19.1 billion euros in 2024 and 8.9 billion euros in 2025. Experts state that electric vehicle competition and high production costs are forcing the industry to restructure.