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50,000 jobs on the line at Volkswagen under Future Plan 2030

Volkswagen said a fundamental adjustment to global workforce capacity, beyond existing programmes, would be required.

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Volkswagen Group has approved its Future Plan 2030, which includes plans for a “Group-wide workforce adjustment of approximately 50,000 positions” as part of what it describes as the most extensive transformation programme in its history.

The Supervisory Board unanimously approved the plan, which sets out 12 initiatives intended to improve the Group’s competitiveness and profitability amid changing demand, technological developments and increasing global competition.

Volkswagen said a fundamental adjustment to global workforce capacity, beyond existing programmes, would be required.

Its analysis indicated that around 50,000 positions, including management roles, will be affected.

The plan also acknowledged that Volkswagen’s European production capacity currently exceeds demand by more than 500,000 units.

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A new production structure for its European plants is due to be developed by the end of June 2027.

Volkswagen said competitive future production allocation for its Emden, Zwickau, Hanover and Neckarsulm plants could not currently be secured on a staggered basis from 2031 to 2034, with alternative uses for the sites being assessed.

Oliver Blume, CEO at Volkswagen Group, said: “The Supervisory Board has unanimously approved the Executive Board’s Future Plan presented today.

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“This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide.

“Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”

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The Group is targeting annual sales of nine million vehicles and an operating margin of nine per cent by 2030, equivalent to an operating result of approximately €31bn.

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It has also set targets of €37bn in overhead costs and €135bn of capital expenditure and research and development spending during the 2027 to 2031 planning period.

By 2035, Volkswagen plans to reduce its model portfolio by around 50% and cut the complexity of its offering by around 75%, with higher volumes concentrated across fewer models.

The Group also plans to streamline its portfolio of shareholdings and businesses by around one-third, with non-strategic activities to be divested or realigned. Its real estate portfolio will also be reviewed.

Further measures include leaner leadership structures, shorter decision-making processes and a Group-wide Operational Excellence programme covering research and development, procurement, production, quality, sales and overheads.

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Volkswagen will also adjust its strategies in North America and China, focusing on the most profitable segments in North America and expanding exports from China towards the ‘Global South’.

Hans Dieter Pötsch, chairman of the Supervisory Board at Volkswagen, said: “With the Future Plan now approved, the Supervisory Board and Executive Board of Volkswagen AG have shown that the company’s transformation is being driven forward with full force.

“The Supervisory Board received a thorough briefing on the transformation concept developed by the Executive Board.

“As the Supervisory Board, we are convinced that implementation of the Future Plan will secure the long-term viability and competitiveness of the Volkswagen Group.”

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