VW plans up to 100,000 job cuts; weighs further asset sales following EUR 10B marine unit deal – FT

Volkswagen is reportedly considering up to 100,000 job cuts and the closure of four German factories, according to sources familiar with the matter. The proposed restructuring, which could mark the largest overhaul in the automaker’s history, is set to be discussed at a supervisory board meeting on July 9. The affected plants—located in Hanover, Zwickau, Emden, and Audi’s Neckarsulm site—could result in over 45,000 job losses, adding to the 50,000 cuts already agreed with unions in late 2024. The company’s works council and Germany’s IG Metall union have vowed to resist the cuts, emphasizing their commitment to preventing such measures.

In parallel, Volkswagen has announced the sale of a 51% stake in its marine engine unit, Everllence, to US private equity firm Bain Capital for €7.4 billion ($8.4 billion). The transaction, which includes safeguards for Everllence’s five German sites, is expected to be finalized by the end of 2026. Volkswagen will retain a 49% stake in the unit. The sale is part of a broader strategy to reduce operational complexity, streamline management, and strengthen the company’s financial position.

Volkswagen’s CEO, Oliver Blume, has emphasized the need for “far-reaching change” across the group, including potential spin-offs of core brands and parts operations. The company’s shares have traded near 16-year lows, reflecting investor skepticism about the effectiveness of the proposed measures. The restructuring comes amid intensifying competition from Chinese automakers, which have eroded Volkswagen’s market share in both China and Europe.