Possible scenario for VW facility cuts – where "Lower" plays a "Higher" role
- #Osnabrück and #Emden, which were possible cut targets, could stay due to their Lower Saxony origins. Gunnar Kilian was in Osnabrück a few weeks ago, essentially saying we've got your back.
- #Dresden, which will only help a bit, is most likely at the top of the list due to its low-hanging fruit nature and a current cash drain.
- #Zwicaku, despite recent investments, converting it from an ICE to a BEV-only facility could also go, given it is in Saxony and not Lower Saxony. A possible deal to hand control to VW's Chinese partner SAIC, which is the parent company of MG, would also not be out of the question and could explain MG's reluctance to announce any investments in Europe so far, while others such as Chery and BYD have been. A gesture like that would also play well with the Chinese in a market that is hugely important to the Germans and where they have been struggling of late.
Taking Brussels, Dresden and Zwicaku out of the game would reduce capacity by around 0.5 million units and increase utilisation rates at the core Group plants such as WOB and Ingolstadt.
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