Pressure appears to be mounting on Volkswagen’s German manufacturing plants. According to the “Handelsblatt”, which reported citing internal sources, the facilities in Emden and Hanover allegedly failed to meet their internal cost targets during the first quarter.
The company declined to comment on these interim figures, instead highlighting average savings of 20% achieved in Wolfsburg, Emden, and Zwickau. Furthermore, the “Handelsblatt” noted that new production data from the industry service Marklines suggests a weak development: output in both Emden and Zwickau dropped in the first two months of the year compared to the previous year, though no data was available for March.
Volkswagen has struggled with meeting cost requirements, with several works having reportedly missed their targets even as recently as 2025. To address this, the company has set an ambitious goal to reduce its factory costs across Europe from over €4,000 to approximately €3,000 per vehicle. Achieving this reduction is expected to rely heavily on cost savings realized at the German locations. In parallel, the group is exploring new operational strategies to increase utilization, including potential collaborations with Chinese manufacturers or finding alternative uses for individual plants.