Uncertain future: VW plans possible closures in Osnabrück

Uncertain future: VW plans possible closures in Osnabrück

The news about the impending closure of a German Volkswagen plant caused excitement in the automotive industry. According to a report by the trading pale, not only the closure of works is on the agenda, but also the company's so-called “job guarantee” is put to the test. This is a worrying development for the employees and the region.

The decline in new car sales and the associated financial difficulties are the main reasons for the upcoming measures. In the first half of 2024, the Volkswagen Group recorded a decline in a profit of around 14 percent compared to the previous year, which led to a result after taxes of around 8.5 billion euros. This forces the company to take drastic austerity measures, including the closure of works.

Welcome and the weak tradition

Dasvolkswagen plant in Osnabrück, where around 2,000 people are employed, could be particularly affected. It is considered the smallest vehicle plant in the group in Germany and has manufactured rather smaller production series and outlet models in the past. The lack of tradition and a stable order situation could now cause difficulties to assert themselves in the group.

The work that was recorded in the Volkswagen Group in 2011 after Karmann's bankruptcy has no long history compared to other locations. Currently, models such as the Porsche 718 and the T-Roc Cabriolet are still being produced there, but the production of which is already in the final phase. This raises the question of what the future of the location could look like without new orders.

Hope carrier E-Porsche and the uncertainty

A possible ray of hope for the work could be the production of a new electroporship. Nevertheless, the demand for e-sports cars has so far been low, which increases the concern among the employees of the Osnabrück plant. The Taycan, Porsche’s first electric model, did not meet the expectations, and the production of the electric Macan was already started in Leipzig. The shift of the market launch for other models, such as the Elektro-Cayman, illustrates the uncertainties associated with the electrification of sports cars.

The IG Metall in Osnabrück shows itself combative and has made it clear that it will counteract any attempts to close the factory. Stephan Soldanski, the 1st representative of the union, made it clear that there were initially no concrete plans for closure, but also non -binding speculations could also put the workforce on alert.

Soldanski urges the commitments to manufacture E-Porsche from 2025. He asks the Board of Directors of Volkswagen to take responsibility and to consider the workforce to be the central component of the future. "Future is only possible with the employees. Otherwise there is massive resistance!" He emphasizes, announcing that IG Metall will do everything possible to secure jobs and act against any plans that endanger the workforce and the locations.

The situation at Volkswagen shows the challenges with which the automotive industry is faced with, especially with regard to electrification and the changing market conditions. The next steps of the company and the union could be decisive for how the Osnabrück location and the jobs will develop there.