What happened
German business weekly WirtschaftsWoche said it obtained a 147-page internal Volkswagen document showing that VW's management board unanimously passed a plan to gradually close four auto plants in Germany.
According to Germany's Bild newspaper, the Emden and Zwickau plants would stop production in 2031, the Hanover commercial vehicle plant in 2032, and the Audi plant in Neckarsulm in 2034.
The internal document reportedly points to overcapacity of more than 500,000 vehicles in Volkswagen Group's European production alone, and says VW can no longer guarantee competitive model allocations for the four plants.
Why it matters
The plan suggests Volkswagen is bracing for a sustained downturn in demand and sees its current German manufacturing footprint as too large for expected market conditions.
Closing plants across multiple locations would mark a major shift for VW's domestic operations and underscores how European automakers are confronting structural overcapacity in the region.
Key facts
Volkswagen's management board unanimously approved a plan to close four German factories, according to an internal document seen by WirtschaftsWoche.
The internal document is 147 pages long.
Bild reports planned shutdowns: Emden and Zwickau in 2031, Hanover in 2032, and Neckarsulm Audi in 2034.
Volkswagen Group's European capacity reportedly exceeds demand by more than 500,000 vehicles.
What to watch next
Whether Volkswagen formalizes the plan and how it manages the phase-out timeline at each affected site.
Reactions from unions, workers, and German regional governments could influence whether the closures proceed as outlined.
Volkswagen may need to reassign vehicle production among remaining plants to address the competitive model allocation issue cited in the report.