Volkswagen’s planned restructuring could put Audi’s vehicle production in Hungary at risk, although no decision has been made to close the plant, according to German investigative outlet Correctiv.
Volkswagen’s supervisory board has unanimously approved a restructuring programme through 2030 that envisages major capacity reductions and the elimination of around 50,000 jobs, in addition to a previously announced 70,000 job cuts. Four German plants in Emden, Hannover, Neckarsulm and Zwickau had already been identified as being at risk of closure.
Correctiv said internal plans could involve an even deeper restructuring, with five plants potentially being closed and 60,000 additional jobs eliminated. This would bring total job losses across the group to around 130,000 by 2030, or roughly 20% of its current workforce of around 650,000.
According to three sources familiar with the plans, the fifth European plant under consideration could be Audi’s vehicle plant in Gyor, western Hungary. A senior Volkswagen executive reportedly told Correctiv that the Hungarian production site could be affected, although the company has not commented on the report.
Audi established its Hungarian operation in 1993 and began vehicle production in 1998. It became a full-scale automotive manufacturing site in 2013 and is home to the Volkswagen Group’s largest engine plant.
With more than 12,000 employees, Audi Hungaria is the largest employer in the region. The company produced a record 200,000 vehicles last year, driven by successful models such as the Audi Q3 and Cupra Terramar. However, its traditional engine production business is facing increasing pressure as the industry transitions towards electric vehicles.
Audi Hungaria CEO Michael Breme told Telex.hu in July that management was demanding maximum adaptability from the workforce to navigate the transition to e-mobility.
"The new reality in the automotive industry is that job security is no longer a given; rather, it must be earned through concessions from employees," he was quoted as saying.
Long-serving engine production workers are increasingly being moved to areas where staff is needed, including electric motor production and vehicle assembly, the latter of which involves more physically demanding work.
Although Audi Hungaria has stopped short of large-scale job cuts, the company has been reducing staff in administrative positions and has announced a hiring freeze in early 2026, leaving vacancies unfilled. Unions accepted management’s proposal of a wage freeze for this year and a 3.2% rise next year, alongside a one-off gross payment of HUF1mn (€2,800). Wages at the Audi plant remain well above the Hungarian average, with experienced assembly workers earning around HUF1.25mn (€3,485) gross per month.
The German news site reported that Gyor is being considered amid significant excess production capacity in Europe, with Volkswagen expecting global annual vehicle sales of around 9mn, roughly 2mn fewer than several years ago. The group is also facing high production costs in Germany, growing competition from Chinese manufacturers and the costly transition to electric and software-based vehicles.
Volkswagen’s restructuring plans include reducing its model range from around 150 to 75 models, cutting procurement costs and substantially reducing production capacity. Management has reportedly warned internally that without major changes, the group could become loss-making from 2030.
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