Volkswagen Eyes Closure of Four German Factories Amid Industry Decline

Volkswagen Group announced it is evaluating the shutdown of four German plants as part of a broader strategy to adapt to a shrinking domestic market and rising external pressures. The move follows a sharp decline in European automotive sales, which fell from nearly 18 million units in 2019 to about 13 million in 2025, and a growing share of the market captured by Chinese competitors. German manufacturers also face higher costs from a 25 percent U. S. import tariff that could change, an aging workforce, and a sluggish post‑COVID recovery. Factory closures are now seen as likely rather than improbable, a shift that could trigger significant job losses and reduce the sector’s contribution to Germany’s economy. The decision underscores the urgency of restructuring the industry to remain competitive.