The European automotive industry is facing significant pressure, with economic challenges and shifting market demands reshaping strategies.
Volkswagen, a symbol of Germany’s industrial strength, is now at a crossroads as it contemplates critical decisions about its operations.
Volkswagen’s Supervisory Board is revisiting its earlier plans to close major factories in Germany, according to Digi24.
While no final decision has been made, discussions about the future of the Dresden and Osnabrück plants show the automaker’s struggle to balance costs and competitiveness.
The Dresden factory, with 300 employees, is under consideration for closure, while Osnabrück, employing nearly 2,300 workers, faces potential sale due to its low utilization rate of 30%.
Efforts to find a buyer for Osnabrück have so far been unsuccessful.
Resolution in December
Internal disagreements between key stakeholders, including the influential Piech and Porsche families, have delayed a decision.
All parties are working toward a resolution by December, according to Manager Magazin. However, Volkswagen declined to comment on the matter.
Meanwhile, Audi, Volkswagen’s premium brand, is preparing to cease vehicle production at its Brussels plant on February 28. This facility, which employs approximately 3,000 workers, manufactures the Q8 e-tron SUV.
Declining sales, high logistical costs, and limited local suppliers have made the factory increasingly unprofitable.
Belgian media reports suggest Chinese EV manufacturer Nio has shown interest in the site, but no agreements have been finalized.
Audi’s decision comes as the industry grapples with falling EV sales in key markets. Germany, Europe’s largest car market, has rolled back EV subsidies, adding to the pressure.
This shift, combined with fierce competition from Chinese automakers, is forcing companies like Volkswagen and Audi to rethink their strategies.
