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VW’s Two-Plant Leak Faces Pushback as Audi Profit Rises on VW Payout

Audi's profit boost from a VW payout spotlights deep cost strain across the group.

Overview

  • An internal McKinsey scenario proposing that only Wolfsburg and Ingolstadt remain in Germany was discussed but is viewed inside VW as unrealistic.
  • VW’s works council called large-scale closures not implementable, pointing to employment guarantees at most German sites through 2030 and at Audi through 2033.
  • Management has engaged BCG and McKinsey on a broad review and is targeting roughly €6 billion in savings by 2030, with formal recommendations due by May 2026.
  • Osnabrück is seen as vulnerable after T‑Roc Cabrio production ends, with reports of talks on alternative uses including interest from KNDS after Rheinmetall declined.
  • Audi reported €4.6 billion after-tax profit for 2025, lifted by a high hundreds of millions compensation from VW, as its operative result fell and US tariffs cost about €1.2 billion; a decision on a possible US plant is expected this year.