Report Puts Volkswagen Restructuring Cost at €16 Billion

Volkswagen estimates its largest-ever restructuring will cost about €16 billion ($18.6 billion), including roughly €10 billion for eliminating up to 60,000 jobs worldwide and €6 billion tied to potential changes at four German plants. The company is reviewing the future of facilities in Emden, Zwickau, Neckarsulm and Hanover as their current production models are phased out over the next decade; estimated costs range from €1 billion each for Emden and Zwickau to €2 billion each for the other two plants. Volkswagen says the restructuring is driven by intensifying competition from Chinese automakers, tariffs and excess production capacity, and plans to cut about 50,000 more positions than previously announced. The company declined to comment on the estimates, which were first reported by Der Spiegel.