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According to several European media outlets, Volkswagen is considering closing four plants in Germany and cutting up to 100,000 jobs worldwide. Logos Press also reported on this. Late last year, the company reached an agreement with labor unions to gradually reduce its workforce by 50,000 employees by 2030.
If the new plans are implemented, the company will face its largest restructuring in decades.
However, Volkswagen is merely the most prominent example of a much broader process, according to The European Conservative. BMW has already set aside up to €1 billion for business restructuring, Mercedes-Benz is cutting costs and staff, and Bosch is preparing to lay off about 18,500 employees. France and Italy are facing underutilization of their factories.
These changes are affecting component, electronics, and software manufacturers, as well as logistics companies across Europe, including Moldova. Automotive companies in our country also primarily supply components to these well-known brands.
China Is Changing the Rules of the Game
Just a few years ago, German automakers were generating a significant portion of their profits in the Chinese market. Today, the situation has changed dramatically, the publication notes.
Chinese companies—BYD, SAIC, Chery, Leapmotor, and Xiaomi—have not only strengthened their positions in the domestic market but are also actively expanding their presence in Europe. Their competitive advantages include lower production costs, proprietary battery technologies, control over supply chains for critical materials, and large-scale government support.
According to industry analysts, the share of foreign manufacturers in China’s automotive market has shrunk from approximately 57% in 2020 to 32% in 2025. Volkswagen has lost its leading position, and Porsche has nearly halved its car exports to China.
The problem extends far beyond the automotive industry
The challenges facing European automakers reflect several long-term factors at once: high energy prices, declining demand, intensifying competition from China, the need for massive investments in electric vehicles, and growing pressure on profits, according to The European Conservative.
Increasingly, experts are speaking not of a cyclical downturn, but of a structural transformation of European industry. Whereas Europe used to export technology and cars to China, Chinese manufacturers are now beginning to occupy production capacity right here in Europe.
According to industry sources, Volkswagen has not ruled out using some of its underutilized German plants to manufacture cars in partnership with Chinese companies.
In effect, this represents a shift in the industrial balance of power. The main question is no longer how many jobs will be lost during the next round of restructuring. What is far more important is who will control European factories, technologies, and key links in production chains in the coming years, the publication concludes.
