Volkswagen earmarks €16 billion for job cuts, plant closures, source says

BERLIN, Sept 10 (Reuters) - ‌Volkswagen ​estimates ​the total cost of job cuts and potential plant closures, part of ‌a landmark restructuring pact struck last ⁠week, at around €16 billion ($18.6 billion), a person familiar ‌with the matter said ‌on Thursday.

The German carmaker, Europe's largest, has embarked on its biggest ever ​restructuring, citing an existential battle against competition from China, biting tariffs and ⁠overcapacity.

The plan includes exploring alternatives for four German plants ​that will eventually run out of models during the next decade and ​a reduction of around ‌50,000 more positions than previously planned.

A Volkswagen spokesperson declined to ⁠comment on the costs, which were first reported by German magazine Der Spiegel.

The source ⁠told Reuters that phasing out production in Emden ​and Zwickau would cost about €1 billion each, while €2 billion each would be incurred at the Neckarsulm and ‌Hanover plants.

About €10 billion would be set aside for costs related to ‌cutting up to 60,000 jobs worldwide.

($1 = 0.8595 ⁠euros)

(Reporting by Christina ‌Amann, writing by ​Miranda Murray and Christoph Steitz, editing by Sabine Wollrab and Thomas ‌Seythal)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Oracle reports earnings today: AI spending bet faces its toughest test yet
• BlackRock private credit fund redemption requests ease in third quarter
• Brazilian top court unseals probe into multibillion-dollar bank fraud