The Volkswagen supervisory board has unanimously approved the management's restructuring plan, known as the Future Plan. This decision follows an earlier-than-scheduled meeting where the board reached a compromise, notably deferring a potential spin-off of the core Volkswagen brand, which had been opposed by the state of Lower Saxony.
CEO Oliver Blume stated that the group will invest a three-digit billion-euro sum in the coming years to enhance competitiveness. The board acknowledged a production overcapacity of 500 000 vehicles in Europe. Consequently, competitive follow-on production for the Emden, Zwickau, Hanover, and Neckarsulm plants cannot be guaranteed from 2031 to 2034.
These four sites currently employ over 40 000 people and have a combined annual production capacity of approximately 750 000 vehicles. While the management board seeks to address these challenges, alternative uses for the facilities are being examined. No plant closures have been finalized at this stage.
The company aims to reduce its model range by approximately 50 percent and product complexity by around 75 percent by 2035. This strategy focuses on increasing volumes per model and aligning platforms, software, and electronic architectures to achieve stronger economies of scale across global markets.