Volkswagen Group Supervisory Board Approves Transformation Plan, Aiming to Cut Approximately 50,000 More Jobs

en.Wedoany.com Reported - On September 3, the Supervisory Board of Volkswagen Group unanimously approved the "Future Plan 2030" submitted by the Board of Management. The Group will cut approximately 50,000 additional jobs beyond existing personnel adjustment plans, while reducing the number of models, adjusting its European production network, and re-planning its business in China and North America. The Board of Management will advance 12 specific measures together with its brands, subsidiaries, and employee representatives.

According to the plan, Volkswagen Group will adjust its group-wide annual sales target to approximately 9 million vehicles, set an operating margin target of 9% by 2030, corresponding to an operating profit of approximately €31 billion. During the planning period from 2027 to 2031, capital expenditure and R&D investment are targeted at €135 billion, with specific investment and R&D projects still to be submitted to the Supervisory Board for review in subsequent planning rounds.

On the product side, Volkswagen plans to reduce its model portfolio by approximately 50% by 2035 and cut configuration complexity by about 75%, while integrating vehicle platforms, electrical/electronic architectures, driver assistance systems, and software systems. On the production side, the Group will continue to reduce excess capacity. The Group confirmed that current European vehicle production capacity exceeds market demand by more than 500,000 units, and will form a restructuring plan for European plant production by the end of June 2027.

The four German plants in Emden, Zwickau, Hanover, and Neckarsulm currently cannot yet secure follow-up production tasks for the period between 2031 and 2034 after existing models are phased out. Volkswagen is simultaneously evaluating alternative uses for these plants. The Group had previously reduced its pre-pandemic production capacity of approximately 12 million vehicles by about 2 million units. The new cross-brand production capacity target is further reduced to approximately 9 million vehicles, with subsequent adjustments also involving China and Europe.

In terms of personnel, Volkswagen stated that on top of the already implemented job reduction plans, the future plan requires adjusting approximately 50,000 positions globally, including management positions. However, the specific implementation timeline and the distribution of positions across brands and regions have not yet been announced. This newly added adjustment is calculated separately from the previously ongoing plan to cut approximately 50,000 jobs.

In terms of regional operations, Volkswagen will further concentrate North American resources on higher-margin market segments; its China business will adjust production capacity and operational arrangements in line with new automotive market growth expectations, and expand exports to "Global South" markets. The Group will also reassess its equity and investment portfolio and develop new group decision-making and governance structures.