Volkswagen sees no viable economic future for Hanover plant after early 2030s

Volkswagen does not currently see a viable economic future for its Hanover plant once its existing products run out in the early 2030s. The warning also extends to three other German sites, whose names have not been disclosed.

Chief Financial Officer Arno Antlitz presented the assessment at a special works council meeting, according to a company statement. He said Volkswagen’s factory costs in Hanover remain significantly higher than those at other European plants, despite improvements.

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From today's perspective, this applies to a total of four German locations.

The company plans to reduce production capacity across Europe by about 500,000 vehicles. Without that reduction, Antlitz said, Volkswagen would face a permanent cost disadvantage of around 1.5 billion euros a year.

The Hanover plant’s future therefore remains tied to a broader restructuring of Volkswagen’s European operations. Production there is expected to run out in the early 2030s, while the company continues to assess what, if anything, could replace the current products.

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Otherwise, a permanent cost disadvantage of around 1.5 billion euros per year would arise.