Volkswagen Ends Polo Production, Plans Job Cuts

Volkswagen has ended the production of its Polo model in Europe after 40 years to focus on smaller, more affordable electric vehicles (EVs), with the Pamplona plant set to produce two small electric SUVs by 2026. Concurrently, Volkswagen faces significant challenges as it plans to cut over 15,000 jobs and potentially close two to three factories in Germany due to competitive pressures and a €10 billion cost-cutting goal. Analysts from Jefferies indicate that these closures could incur up to €4 billion in costs, and the company's recent retraction of its historic job security pledge has heightened employee anxieties. Although labor unions hold significant sway on the supervisory board, they may not be able to prevent some of the planned closures. Volkswagen's strategic pivot comes amid increasing competition from Chinese EV imports and a pressing need to reduce excess capacity and spending.