VW faces crisis: Radical overhaul planned for German auto icon

Volkswagen, a symbol of German industry, is embarking on a radical transformation, signaling the largest overhaul in its corporate history. This drastic measure is driven by the need to adapt to a changing automotive landscape, particularly the shift towards electric vehicles.

The restructuring is expected to be severe, with significant cuts to both jobs and production facilities. Projections suggest that the company could ultimately eliminate over 100,000 positions. This deep cutback is already being felt, as evidenced by the closure of the Audi plant in Brussels at the end of 2025, resulting in the loss of 3,000 jobs.

The closure of the Brussels plant, which produced luxury electric Audis, was attributed to insufficient demand and logistical challenges. The successor model is slated for production in Mexico, a move aimed at better serving the North American market where electric luxury vehicles are reportedly more popular. This strategic shift underscores VW's commitment to adapting its global production footprint to align with market demands and technological advancements.

However, the exact scale of these impending cuts remains a point of contention within Volkswagen's supervisory board. This internal disagreement highlights the complex and sensitive nature of the restructuring process, as the company navigates the difficult decisions required to secure its future in the evolving automotive industry.