Volkswagen (VW), one of the world's largest automakers, is mired in a deep crisis. The group has announced ambitious plans to slash costs by 20 percent by the end of 2028, amounting to approximately 60 billion euros in savings. This is a continuation of earlier austerity efforts that have already yielded billions. A major problem for the group is weak demand in China, but also U.S. tariffs and fierce competition from Asian rivals. In Germany, a deal to eliminate 35,000 jobs by 2030 has already been struck — without plant closures, thanks to an agreement with the trade unions. Discussions about factory shutdowns persist, however, fueling anxiety among workers. In Poland, where VW also operates key facilities, the outlook appears more stable for the 9,000 employees.
VW's troubles date back to the Dieselgate scandal of 2015, but the current crisis has broader roots. In 2024, net profits fell by 64 percent year on year, prompting drastic measures. The weakening Chinese market, where VW is losing share to local electric-vehicle manufacturers such as BYD, has dealt the biggest blow. On top of that come high production costs in Germany — higher than in Portugal or Poland. Europe's transition to electric vehicles (EVs) is not helping either: despite heavy investment, models like the ID. Buzz have not sold as well as projected. In 2025, the group grappled with an 11-billion-euro funding gap that delayed investment in new models and factory upgrades. As of February 2026, the situation remains tense: VW is searching for ways to lower its breakeven point in order to survive the era of cheaper Chinese EVs.
The German government, under electoral pressure, has warned against closures, but experts see them as a symptom of deindustrialization. Companies like Miele are already relocating production to Poland, illustrating the trend. VW, which employs more than 120,000 people in Germany, plans to cut headcount but without operational layoffs — thanks to an agreement with IG Metall. Even so, plants in Emden, Zwickau, and Osnabruck are at risk. In 2024, the Audi factory in Brussels was shut down, and some production lines were shifted to Mexico.
Volkswagen has been present in Poland since the 1990s, when a joint venture was established in Poznan. Today the group operates several key locations: a factory in Poznan (producing the Caddy and T6.1), Wrzesnia (Crafter), Polkowice (engines), and Antoninek (components). Together they employ thousands — Poznan alone accounts for over 11,000 workers, Wrzesnia roughly 3,000. These plants serve as the second "leg" of VW Nutzfahrzeuge in Europe.
In the context of the crisis, the Polish factories are not directly threatened with closure. Quite the opposite — labor costs 30–40% lower than in Germany make them attractive candidates for relocation. In December 2024, VW considered moving production of the ID. Buzz from Hanover to Poznan or Wrzesnia to cut costs. Such a move could create new jobs and boost output. Eastern Europe, including Poland, has seen a 34% increase in job postings from German companies.
The Polish plants are not without problems, however. In the past, production stoppages have been triggered by external crises: the war in Ukraine (2022), flooding (2024), and chip shortages. In 2025, weak demand led to line shutdowns at the Hanover (Germany) and Poissy (France) plants, which indirectly affects suppliers in Poland. Even so, Poland is benefiting from the transformation: EV production in the region is on the rise, as seen at Skoda in Czechia (part of the VW Group).
