Factbox: Which Volkswagen Factories in Germany May Face Layoffs or Closure?

Volkswagen plans to terminate its long-standing job security program, which has been active since 1994 and safeguards against job cuts until 2029. This decision comes amid increasing competition from Asian manufacturers.

The IG Metall union highlights that several factories in Germany could be impacted by the end of Volkswagen’s job security scheme. Analysts have previously identified the Osnabrück and Dresden sites as potential closures.

Most affected facilities are located in the north-western state of Lower Saxony, with the exception of the Kassel plant in Hesse and the Dresden factory in eastern Germany.

Brunswick
Volkswagen’s oldest manufacturing site, situated in Brunswick, had approximately 7,400 employees as of 2022, serving a city with around 250,000 residents. This facility manufactures critical components like front and rear axles, steering systems, battery systems, and various machinery and tools. Since 2019, it has also produced batteries for the new modular electric drive matrix (MEB) vehicles.

Emden
Established in 1964 strategically near a seaport, the Emden plant originally focused on the VW Beetle. It has since expanded its production to include models such as the VW Passat and the electric ID.4. More than 8,000 workers are currently employed there, with an annual output of around 180,000 vehicles, impacting a city that has a population of approximately 50,000.

Hanover
Employing about 14,000 individuals, the Hanover factory is one of Volkswagen’s key locations in Lower Saxony, which has a population of 8 million. This site began production of the iconic VW ‘Bulli’ in 1956 and is currently known for the sixth-generation T-Series camper vans and the Amarok pickup, in addition to manufacturing parts like cylinder heads and inlet manifolds.

Kassel
Since its acquisition in 1958, the Kassel plant has become Volkswagen’s largest components facility worldwide, producing over four million transmissions annually. With around 16,500 employees, it serves as the primary employer in northern Hesse, catering to a city of roughly 200,000 residents. The transmissions manufactured here are utilized across various brands, including Volkswagen Commercial Vehicles, SEAT, Audi, Škoda, Porsche, and Lamborghini.

Salzgitter
Initially opened in 1970 for the K70 model, the Salzgitter plant currently employs about 7,500 people in a city of just over 100,000. It produces engine variants and components for electric vehicles. Volkswagen had also announced a significant investment to convert the primary engine facility into the main battery cell plant for the group.

Wolfsburg
Wolfsburg is the location of Volkswagen’s headquarters and the heart of its manufacturing operations. Covering an area comparable to 910 soccer fields, the vast facility employs approximately 70,000 workers and produced nearly half a million vehicles in 2023, including the popular VW Golf.

Dresden
This plant, which opened in 2001, had around 340 employees as of December 2023. The facility transitioned to electric vehicle production in 2017, having previously manufactured models such as the Phaeton and Bentley Flying Spur, and currently focuses on the ID.3.

Osnabrück
Volkswagen acquired the former Karmann factory in 2009, which now produces vehicles and body parts for brands like VW, Skoda, Porsche, and Bentley. Specializing in limited series production like convertibles and roadsters, the plant employs about 2,300 staff in a city with around 160,000 residents. However, production challenges may arise as Porsche plans to shift the production of its next-generation Cayman and Boxster models to another facility, alongside Volkswagen ceasing T-Roc Cabriolet production next year.