Volkswagen will close 4 plants in Germany and lay off 100 thousand workers

This measure is being considered by the management of the German concern as part of a large-scale restructuring of its business, Reuters reports, citing informed sources. If implemented, it would be the largest reorganization in the history of the auto industry.

Volkswagen is considering closing four German plants and increasing its job cuts to 100,000, two sources familiar with the situation said on Friday. This could become the largest reorganization in the history of the industry,” the agency said in a statement.

According to his sources, members of the supervisory board of the German automaker were informed about these plans. These measures are scheduled to be discussed at a meeting on July 9.

The sweeping cuts were required amid growing competition from Chinese auto companies and U.S. import tariffs on cars. The Volkswagen plants in Hannover, Zwickau, Emden, as well as the Audi plants in Neckarsulm are under threat of closure.

The layoff of 100 thousand people and the closure of four plants could become the largest restructuring in the history of the auto industry, according to Reuters.

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