Prospective cuts at Volkswagen: What about Autoeuropa in Portugal?

The Volkswagen Group has to “stretch the belt” to ensure a sustainable future and growth, due to the various pressures it faces – including the strong fall in China, one of its main markets.

It's already official that the range of models will be cut by 50 percent, while rumours point to the possible closure of factories in Germany and cut it into up to 100,000 jobs in the coming years.

In Portugal, the manufacturer is present with the Autoeuropa. The question is: can the Palmela unit be affected by possible cuts?

O Minute Auto he contacted the communication department, which has made it clear to us that he will not be able to give an answer on the matter at this time.

There, the new T-Roc is already produced. And the future production model resulting from the ID will also be manufactured. Every1, predictably from next year – for now, only the concept is known. This is a low-cost tram, which should cost something around 20,000 euros.

More production, fewer employees

As reported by the national press about a year ago, the government supports production at EUR 30 million, this being the first electric Volkswagen manufactured on national soil. Moreover, “one of the largest investment plans” in the company’s history is currently under way, totaling €600 million – including a new Pressa XL and a new painting workshop.

Last year, exited the assembly lines of Autoeuropa 240,400 carsIn the second best year ever. Sales volume remained at EUR 3.8 billion despite the slight increase in production (about four thousand units). Export accounts for 99 percent of production.

In recent years, the number of workers in Volkswagen Autoeuropa has decreased: from a peak of 5,912 in 2017, the descent has been gradual every year, up to 4,803 at the end of 2025.

Market and adjustments in operations

Naturally, the market will dictate much of what will happen. To keep the activity intact, any factory – whether in Portugal or in another country – must be profitable and meet market needs. Therefore, Autoeuropa is now dependent on the performance of T-Roc.

On the subject, the Volkswagen statement last week was clear: “The Group will align its production network with the changed market environment and increasing competition. The goal among all brands is an adequate level of demand of about nine million units per year. Before the Covid-19 pandemic, the company invested around 12 million vehicles and has already made significant progress with a reduction of two million units. Further steps will follow in China and Europe.”.

By making Autoeuropa part of Volkswagen’s production network, it may not become undefeated to any adjustments in existing capacities or to a readjustment in the range: 50 percent cut of models is expected, focusing on competitive segments. But at the moment there are no specific official indications of what will happen in these areas.

On the other hand, there will be a greater focus on “digitalization, artificial intelligence and shared services” in order to increase productivity and accelerate processes.