The tightened austerity measures at Volkswagen could cost the company up to four billion euros in the fourth quarter, according to analysts' estimates. As calculated by experts from the US investment bank Jefferies on Monday, provisions for the planned capacity reduction could amount to three to four billion euros. The company is facing significant overcapacity, especially in the European auto market, where two million fewer vehicles are sold annually since the pandemic. A quarter of this decline is attributable to Volkswagen.

Chief Financial Officer Arno Antlitz announced two weeks ago that Volkswagen would reduce its capacities and consider plant closures. According to Jefferies analysts, the Wolfsburg automaker is considering closing two to three plants, with up to five locations in Germany being possible candidates. The job cuts could affect over 15,000 jobs.

Volkswagen recently terminated the collective agreements that, among other things, guaranteed decades-long job security. Negotiations with the IG Metall union are set to begin on September 25. Works council chairwoman Daniela Cavallo has already announced resistance against any potential job cuts.