Volkswagen Group Approves "Future Plan 2030"...Major Workforce Reduction of 50,000 and Portfolio Overhaul

Profitability Enhancement Through Intensive Structural Optimization
Approximately 50% Simplification of Model Portfolio

The Volkswagen Group Supervisory Board has unanimously approved the "Future Plan 2030." The plan aims to overhaul the company’s global competitiveness by restructuring the entire product, production, workforce, and business portfolio while boosting cost competitiveness and profitability.

The Volkswagen Group has set a core financial target of achieving an operating margin of 9% by 2030. To this end, it will focus its capabilities on its finished vehicle business and invest a total of 135 billion euros in facilities and research and development between 2027 and 2031. Oliver Blume, CEO of the Volkswagen Group, stated, "We will invest more than 100 billion euros in the coming years to make the Group's flagship brands even more competitive."

The product lineup will also be significantly reduced. The total model portfolio will be cut by approximately 50%, and product complexity will be lowered by about 75%. The strategy is to concentrate production and development capabilities on competitive vehicle types, achieving economies of scale and reducing costs.

Production structures will also be restructured. The Volkswagen Group has assessed that its current European production capacity exceeds market demand by more than 500,000 units. Accordingly, by June 2027, it plans to establish a sustainable and competitive production structure at its European plants. The Emden, Zwickau, Hanover, and Neckarsulm plants are expected to find it difficult to secure competitive production volumes from 2031–2034 onwards, and alternative uses for these facilities are being considered.

A large-scale workforce adjustment has also been forecast. According to the "Future Plan 2030," an estimated reduction of around 50,000 employees—including management positions—is deemed necessary across the Group. Labor and management have stated that both job security and profitability must be achieved, and further consultations are expected during the detailed restructuring process.

The business portfolio will also be reduced by about one-third. Stakes and business units that offer limited strategic or financial value to core operations will be sold or reorganized, and the real estate portfolio will also be reviewed. The Group will simplify its decision-making structure and organization to cut costs and speed up decision-making processes.

Regional strategies will change as well. In North America, the focus will be on highly profitable vehicle segments. In China, operations will be adjusted to reflect local market growth prospects, while exports to the "global south" regions such as Asia and Latin America will be expanded.

With this approval, the Volkswagen Group will officially move the "Future Plan 2030" into the implementation phase. Follow-up measures will be taken after consulting with brands, subsidiaries, and employee representatives, and the Supervisory Board will continuously monitor progress.

This content was produced with the assistance of AI translation services.