The supervisory board of Volkswagen Group has unanimously approved the 'Future Plan 2030', a restructuring strategy designed to strengthen the company's competitiveness. As part of this plan, the automaker intends to reduce its total workforce by 100,000 employees, including an additional 50,000 cuts beyond previously planned reductions.
The restructuring includes a plan to eliminate half of the current model lineup. The fate of four German factories in Hanover, Zwickau, Emden, and Neckarsulm remains uncertain. These plants employ more than 40,000 people and have a combined annual production capacity of approximately 750,000 vehicles.
The company's European production capacity currently exceeds demand by more than 500,000 units. A sustainable production structure for European plants will be developed by the end of June 2027. The board acknowledges that competitive production allocation for the mentioned factories cannot be secured on a staggered basis from 2031 to 2034.
Volkswagen Group's annual sales have decreased from approximately 12 million vehicles to 9 million. To support the transition, CEO Oliver Blume announced that the company will invest a three-figure billion sum over the coming years. The company is also assessing alternative uses for its underutilized factories, including the production of military hardware.
