Volkswagen is reviewing “everything”, but Autoeuropa should escape cuts

O volkswagen group is going through a difficult time and so the group is developing a cost review strategy, including job cuts, to try to save the company. Here, Autoeuropa must escape this “crisis”. 

“We're reviewing everything, including our factories and their cost structures. We cannot remain competitive in the global market with underused factories. That is why we need to further reduce capacity – globally, by about one million vehicles a year, including approximately 500 thousand in Europe – to create the conditions for efficient production,” the group’s source told the economic press. 

For the Palmela plant and without specifying specific establishments, the same source only stated that “according to current planning, the production version of ID.EVERY1 should be manufactured at Volkswagen Autoeuropa in the future along with T-Roc“, which could be a good indicator for Autoeuropa. 

Moreover, the Autoeuropa Workers' Committee had already indicated to the Business Journal that there were no signs that the wave of cuts could reach the Palmela factory. 

Situation is “more than critical”

The Volkswagen Group is in a “more than critical” situation, according to executive director Oliver Blume. The conglomerate has already advanced to cut 50,000 jobs in the face of the difficulties it faces.

The brand can take new savings measures to cope with the delicate situation it is in. In recent months, there has been speculation about the closure of factories and cutting of 100,000 jobs. 

In the hands of a complicated financial situation, Executive Director Oliver Blume believes that new savings measures should be taken when speculation is maintained about the closure of factories in Germany and the cutting of 100,000 jobs worldwide.

“ We need to reduce complexity, simplify our structures consistently and reduce costs,” said Oliver Blume during a meeting with the workers at the group headquarters in Wolfsburg (Germany), according to the German media.

According to the responsible, “all industry is under enormous pressure” due to customs policies, new competitors and geopolitical risks.

The Volkswagen group, to which brands such as Volkswagen, Audi, Porsche and Seat/Cupra belong, started a restructuring process and announced, in December 2024, plans to cut 50,000 jobs in Germany.

In recent months, Blume defended the need to reduce another 50,000 positions, doubling the number previously announced and closing four factories in Germany.