Volkswagen Chief Executive Oliver Blume told workers at the automaker’s Emden electric vehicle plant that the company’s cost-cutting initiative remains ongoing, with no guarantee of survival for facilities lacking long-term business plans.
Blume, addressing staff during a tour of Volkswagen sites this week, emphasized that the transformation effort would continue beyond current measures. The Emden plant in Lower Saxony is one of four factories without a confirmed business plan beyond 2030, leaving its future uncertain under the company’s turnaround strategy.
Labor costs at Emden were highlighted as a key challenge, with Blume stating they exceed comparable European locations by more than 100%. He added that factory operating costs at the site remain significantly higher than peers, framing the gap as a benchmark for competitiveness rather than a critique of the workforce. "This journey is not over," Blume said. "We measure ourselves not only against our own past performance but against the best locations in Europe."
The CEO framed plant closures as a "costly last resort" while urging collaboration with partners, investors, and through new industrial solutions to secure prospects and jobs. Emden’s status underscores Volkswagen’s broader restructuring efforts, which include reallocating resources to higher-demand segments amid shifting market dynamics.
Volkswagen has not disclosed specific timelines for potential closures or the financial impact of maintaining unprofitable facilities. The company’s leadership has previously cited the need to align production capacity with electric vehicle demand and cost structures across its European operations.
