Volkswagen CEO looks to avoid plant closures as automaker moves to cut costs

[BumRushDaShow]

Source: ABC News/AP

July 12, 2026, 4:07 AM


BERLIN -- Volkswagen's CEO indicated in comments published Sunday that he's trying to avoid closing plants as he seeks to turn around the automaker's performance.

The Wolfsburg, Germany-based company faces pressure to cut costs at home and increasingly intense competition in the lucrative Chinese market, in particular.

Last week, Volkswagen said its “fundamental realignment” over the past three years had reached its next phase, announcing plans to streamline the model lineup by up to half.

It didn't provide specifics, and questions remain over how else it will cut costs. There has been renewed speculation about the future of several plants in Germany. “There are more intelligent solutions than closing plants,” CEO Oliver Blume told the Bild am Sonntag newspaper.

Read more: https://abcnews.com/Business/wireStory/volkswagen-ceo-avoid-plant-closures-automaker-moves-cut-134688940

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There's a big Volkswagen plant in TN that just ratified their first union contract 5 months ago.

Didn't realize they had bought up luxury brands like Lamborghini, Porsche, and Bentley.

[twodogsbarking]

1. Take a pay cut or we will close. Heard that one a few times.

[paleotn]

2. If they can't turn it around...

and it's doubtful they can, they have not choice but to shrink. The car market isn't what it was even 10 years ago.

[wolfie001]

3. $28,000-$55,000 seems the price range

I'm on the poor side of middle class and got my 2-BR, 2BA condo for $60,000 in 2011. Who can afford these prices? 84-month loans?

[FakeNoose]

4. Not many people are buying brand-new cars anymore

I don't have anything against Volkswagen, or European cars. A good quality and gently-driven used car is a much better bargain. That's all I have purchased in the last 40+ years.

[C Moon]

5. SURE he does. :/

They always say positive things in the beginning of layoffs because they don’t want employees looking elsewhere and leaving.

[LT Barclay]

6. He should be the first to go. Like electing Trump if you are trying to destroy the U.S., there was no better way to

destroy VW than what has happened over the past 20 years.
I say I'm no expert and I don't really follow car companies, but my dad loved his VWs and used to be a member of a midwest VW club. I had a GTI for a while but discovered that you can't drive it like the commercials unless you have a pit crew or deep pockets.
VW had been teasing a production version of their Bulli van since 2004. It took 22 years to make it to the showroom. And when it did, the price was twice the projected sales price ($80,000 vs $40,000) and it took so long to produce the thing that the market had many other all electric vehicles. But even though I love the idea of all electric, having the gas back up like we do with our Chevy Volt makes the car a lot more practical. So who wants a family vehicle that costs $80k and you can't even rely on it for a trip to the beach?
Then there is the bug which they just stopped producing AGAIN a year or two ago. I don't know much about marketing, but even I know that while the bug may not be the car that people leave with, it is the car they come to look at. Without the bug and the bulli what's left? Just another middle of the road car company with limited appeal.

[J_William_Ryan]

7. "Not many people are buying brand-new cars anymore"

True.

Bought a good quality, gently driven 2016 Golf with complete service records and a two year power train warranty for $8700.

Looks and drives like new.