Worryingly for Volkswagen management and workers alike, further plant closures may be a possibility under these new cost-saving measures.
VW Group’s Answer To 2025 Sales And US Tariffs
In a report originally published by German's Manager Magazin, a closed-door meeting among VW’s top executives took place in mid-January, the goal of which was to trim further fat from the group’s budget over the next two and a half years. “Geopolitical" concerns were apparently top of the bill.
VW’s recent 13% drop in global sales is believed to be the key reason behind this meeting. The heavy (and unpredictable) tariffs on non-US-made vehicles and auto parts being imported into the United States was also a likely topic of discussion, the unpredictable nature of which has seen both MSRPs increase and customer demand go down. Falling sales in China are also a concern, with VW one of many European manufacturers struggling to find a finger-hold in the region against home-grown competition, particularly in the EV segment.
Why Plant Closures May, Or May Not, Be On The Table
Though no specific details were provided as to the nature of these cuts, the MM report suggests that savings will be diversified across all VW Group brands, including VW proper, Audi, Bentley, Porsche, Lamborghini, and Ducati. A similar program was launched by the Group three years ago, the savings from which were said to be in the billions. The brand also previously announced that up to 35,000 jobs would be cut by Volkswagen Germany before 2030, though it is unclear whether there are any overlaps between this and the 2028 cost-cuts.
Perhaps inevitably, the possibility of further plant closures is also believed to have been discussed. A statement in the report from Volkswagen's works council chief, Daniela Cavallo, however, explains that an agreement struck in 2024, which “expressly ruled out plant closures and layoffs for operational reasons,” would make this a difficult avenue to pursue. No further details were provided, though an official update from VW is expected on or around 10 March.
Volkswagen Struggles For Sales... Well, Except The EVs
This news caps what was a troubling 2025 for Volkswagen. The German brand’s 8.98 million global sales last year, for example, was certainly healthy, but couldn’t quite pip Toyota to the global sales top spot. In North America, each of VW’s internal combustion engined models saw a drop in sales year-on-year. Among the biggest, sadly, was a near-35% drop for the brand's GTI range – which, huzzah, will be keeping internal engines alive – and a 24.4% fall for the Jetta sedan. We’ll ignore the 97.8% fall for the now-out-of-production Arteon.
Oddly, sales for both of VW’s all-electric models in the US increased over their 2024 totals. Indeed, 22,373 examples of the ID.4 were shifted in 2025, some 31.4% up on the 17,021 units moved the year prior. Moreover, 6,140 ID.Buzz EVs found new homes compared with just 1,162 in 2024, a massive 428.4% increase year-on-year. All the more ironic then that the e-Bus will take a sabbatical in 2026.
