VW's Osnabrück plant faces an uncertain future. The factory might not have a model to produce from 2026 as Porsche adjusts its electric vehicle plans.

VW's second-smallest plant in Germany currently builds the VW T-Roc Cabrio. This model will likely be discontinued in spring 2026 without a successor. The facility also handles overflow production of Porsche's 718 Boxster and Cayman models since 2022.

Porsche has decided not to award a production contract to Osnabrück after 2026. The sports car maker believes its own facilities in Zuffenhausen will have enough capacity for electric sports cars, partly due to slower-than-expected demand for EVs.

VW hasn't made a final decision yet. A company spokesperson said:

"The allocation of the Osnabrück plant is – as every year and for all plants in the Group – part of the planning round at the end of the year."

The news has shocked the IG Metall union. They're surprised by both the non-awarding of the contract and the unusual timing of the announcement before the annual planning round.

The Osnabrück facility employs around 2,300 people. VW took it over after supplier Kamann went bankrupt.

This development comes just weeks after VW said it couldn't rule out plant closures in Germany due to high costs and poor capacity utilization. Osnabrück and the Gläserne Manufaktur were mentioned as potential closures, though they're the smallest locations and might not save much money if shut down.

Source: Spiegel