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VW starts car dismantling in Zwickau – up to EUR 90m, later up to 1,000 jobs

Volkswagen ramps up car recycling in Zwickau. The former Playmobil plant in Dietenhofen is to become a data centre. The ifo institute sees fewer planned job cuts.

Graphic: investment projects by region, 29.10.2026 (own graphic)
Graphic: TERRA WORLD NEWS (own graphic based on the sources listed)

Data as of: As of 29 October 2026, approx. 07:30

Total listed investments (table)6.95EUR bn
VW Zwickau: investment (up to)90EUR m
ifo employment barometer, October95.5pts +0.42 %
GfK consumer climate, November−30.8pts

Volkswagen has begun ramping up car dismantling in Zwickau, Saxony. About 4,100 cars are to be taken apart on two shifts in 2027, rising to up to 15,000 a year by 2030. VW plans to spend up to EUR 90m on conversion, equipment and AI tools; Saxony is supporting the project with up to EUR 10.7m. The site starts with 100 staff, later up to 1,000 (dpa-AFX, 28 Oct).

In Dietenhofen, Bavaria, Playmobil's former main plant is to become a 100-megawatt data centre campus. Grid operator N-ERGIE has promised the capacity. The Horst Brandstätter Group gave no amount or timeline. When the plant closed at the end of June, 350 people lost their jobs (dpa-AFX, 28 Oct). Separately, US group GE Vernova is buying Berlin-based Trench Group, a maker of high-voltage equipment, for about USD 9bn.

Mercedes-Benz will launch a new severance scheme for non-production staff in December, without giving a number. In Marktheidenfeld, the district chief, the mayor and IG Metall want to save jobs at risk at Cummins (about 350) and Schneider Electric (about 110, incl. Lahr); the figures come from IG Metall, and Cummins has only confirmed an information and consultation process.

Listed investments total EUR 6.95bn, with 320 job cuts stated (own calculation; the table was shortened, so no comparison with yesterday). The ifo employment barometer rose to 95.5 points in October (Sep 95.1). The GfK consumer climate for November fell to −30.8 points.

Investment projects and job cuts, 19–28 Oct 2026 (new at top)
State / regionCompany / projectSectorAmount (EUR m)Jobs (− = cuts)Date / source
Saxony (Zwickau)Volkswagen – circular economy centre: car dismantling ramps up (about 4,100 in 2027, up to 15,000 a year by 2030)Cars / recycling90100NEW: dpa-AFX, 28 Oct 2026, 09:22; 'up to EUR 90m'; Saxony support up to EUR 10.7m; 100 jobs at start, up to 1,000
Bavaria (Dietenhofen, Middle Franconia)Horst Brandstätter Group (Playmobil) – former plant to become 100 MW data centre campusData centres––NEW: dpa-AFX, 28 Oct 2026, 11:32; amount and timeline not stated; 350 people lost their jobs when the plant closed at end-June
Berlin (HQ); North Rhine-Westphalia (Troisdorf)Trench Group (high-voltage equipment) – GE Vernova (US) buys it from Triton for about USD 9bnGrid equipment––NEW: GE Vernova, 28 Oct 2026; over 3,000 staff, 11 plants; closing expected end-2027; acquisition, not an investment – not in total
Baden-Württemberg (Stuttgart) and nationwideMercedes-Benz – new voluntary severance scheme for non-production staff from DecemberCars––dpa-AFX, 28 Oct 2026, 13:42 (announced end-September); no number given
Bavaria (Marktheidenfeld-Altfeld)Cummins (about 350 jobs) and Schneider Electric (about 110, incl. Lahr) – jobs at risk; district chief, mayor and IG Metall meetEngines / electrical––Radio Gong, 28 Oct 2026; IG Metall figures from 17/19 Sep; Cummins confirms only a consultation process – not in total
Bavaria (Garching)Suss Microtec – ends production in GarchingSemiconductors / machinery–−70dpa-AFX, 27 Oct 2026
Thuringia (Erfurt)State of Thuringia – expansion of state data centrePublic IT63–Kommune21, 27 Oct 2026; complete by end-2030
Bavaria (Gerolzhofen) and Thuringia (Nordhausen)Aryzta – two plants close, output moves to EislebenBakery–−250dpa-AFX / AWP, 26 Oct 2026; net about 250 jobs
Hesse (Frankfurt am Main)Amazon Web Services – expansion of AWS Europe region (part of over EUR 16bn for 2027)Cloud / data centres4,800–Amazon press release, 20 Oct 2026
Hesse (Frankfurt, Höchst Industrial Park)Sanofi – new insulin plantPharma2,000–dpa, 19 Oct 2026; groundbreaking; operation from 2032
Labour market and consumers: new data of 28 Oct 2026
IndicatorValue (points)Prior month (points)Published
ifo employment barometer, October95.595.128 Oct 2026 (BTA)
IAB labour market barometer, October (above 100 = positive trend)100.1–28 Oct 2026 (dpa-AFX)
GfK/NIM consumer climate, November−30.8−30.628 Oct 2026 (dts)
– income expectations−15.7−15.028 Oct 2026 (dts)
– propensity to save17.221.528 Oct 2026 (dts)

For information only, not investment advice. Prices as of the time stated, not real-time quotes.

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