Volkswagen has published data on its downsizing plan to cut costs and address the crisis the group is going through. 50 thousand more jobs than expected will be eliminated, reaching 100 thousand, four factories in Germany will be closed and 50% of the models in production will be eliminated.
Even if Volkswagen does not have plants in Italy, many companies, especially in the North, supply the German group. A significant reduction in turnover would have a significant economic impact on these realities, slowing down the entire economy of the most productive part of the country.
The Volkswagen crisis in the numbers of the new cuts plan
Volkswagen has essentially confirmed the rumors that the German press had anticipated after the management meeting from which the new cut plan to reduce the German group’s expenses emerged:
- 50 thousand more jobs cut than the original plan, for a total of 100 thousand redundancies;
- four German locations set to close, Hannover, Neckarsulm, Zwickau and Emden;
- a 50% reduction in produced models and a 75% reduction in customized fittings.
A decision taken after profits for the first quarter of 2026 fell by 28% compared to those of 2025, a year in which the group’s assets had already reduced by 44%.
How important Volkswagen is for Italy
Volkswagen’s plan does not directly affect Italy. The German group has no plants in our country. Its network of suppliers, however, is very large and includes hundreds of Italian companies, especially in regions such as Lombardy, Veneto and Emilia-Romagna. They range from famous and important companies such as Pirelli and Brembo to many small companies in sectors such as gaskets, mechanical processing or electronics.
Every year our country exports automotive components to Germany worth billions of euros. According to data from Anfia (the National Automotive Industry Supply Chain Association), in 2025 German companies purchased components worth 5.2 billion euros from Italian companies. Volkswagen is the leading European automotive group and, even if it does not publish precise data on imports from Italy, it can be estimated that a significant part of this figure derives from the group’s orders.
Chinese companies are taking advantage of the crisis
Chinese car companies are taking advantage of Volkswagen’s crisis. Brands such as BYD, Geely, Chery, Dongfeng, Xpeng and Leapmotor are exporting more and more cars to Europe, and just in June, China exported more than 1 million cars abroad for the first time.
The area in which Chinese companies are doing best is electric mobility. The batteries from Catl, the leading Chinese giant in the sector, are superior and this allows Chinese cars to have a greater autonomy than European ones. At the same time, Chinese car prices are lower, thanks to at least two factors:
- the traditional lower labor costs in China;
- easier access to electrical technologies, such as batteries.
