Volkswagen plans to eliminate up to 100,000 jobs and shut four German plants to counter the rapid rise of Chinese competitors. This move would remove nearly one in six of the carmaker's global workforce. CEO Oliver Blume is streamlining the group to focus on core automotive operations amid high risk levels.

These cuts follow the sale of the Everllence marine engines unit to Bain for €7.4bn. The company aims to save €6bn annually by 2030. Pressure comes from US tariffs, Middle East conflicts, and a worsening Chinese market, where Chinese brands now hold nearly 10% of the European market share.

Union leaders from IG Metall and the works council have vowed strong opposition to the plan. They argue the board is reacting blindly rather than managing strategically. The proposal includes closing sites in Emden, Zwickau, and Hanover, as well as an Audi factory in Neckarsulm.

Management is considering alternatives like producing Chinese models at these plants or selling them to defense firms. The supervisory board will review the specific details of the reorganization on July 9. This restructuring represents one of the largest job-cutting programs in industrial history.