Volkswagen job cuts: Greens demand social plan and strong European industrial policy

If Volkswagen's CEOs had put as much time into catching up with China on electric cars as they did into cheating software, those people would still have a job today.

Strasbourg, 9 July 2026 - Volkswagen is set to announce later today that it will cut up to 100,000 jobs and close four factories in Germany. "100,000 families risk losing their income. The uncertainty of not knowing whether you'll still have a wage next month, or be able to pay your mortgage, is terrible. If Volkswagen's CEOs had put as much time into catching up with China on electric cars as they did into cheating software, those people would still have a job today. It's the workers who pay the price, not the executives with their multi-million bonuses," says Sara Matthieu, member of the European Parliament's Industry Committee.

This would be one of the largest job cuts ever in European industry, and double what had previously been announced. Volkswagen's Supervisory Board is discussing the plan today. According to Matthieu, this is the result of years of mismanagement: "Europe is letting its car industry slip away through wavering policy, with no clear direction, no investment in our own battery production, and no vision."

Social plan and industrial policy

Matthieu calls on Volkswagen to work with the unions to agree a strong social plan, including training opportunities and support finding new work for those who lose their jobs. Workers who lose their jobs must not be left to fend for themselves: they have a right to support finding new work, retraining for roles in short supply, and enough time to make that transition without losing income.

At the same time, she is calling on the European Commission to finally deliver a real industrial plan for the sector: "With a genuine industrial plan, focused on affordable electric cars and European battery factories, we can still save the jobs that remain."

Three priorities for the sector

Matthieu puts forward three priorities to support the car industry in Europe: "We need to build a strong market for affordable electric vehicles faster, including through social leasing for families who are struggling to make ends meet. Europe must fully commit to its own battery production, instead of naively watching as we become ever more dependent on China.

Our patience with unfair competition from China has run out: Europe has spent years being undercut by Chinese cars that stay afloat thanks to illegal state subsidies. We must finally protect our car industry, with targeted support for cars 'Made in Europe' and strict trade tariffs where needed."