Volkswagen has approved the largest restructuring plan in its history. The company's supervisory board unanimously backed the Future Plan 2030 this week. Under this plan, 100,000 jobs will be eliminated across the group by 2030. The cuts affect brands including Audi, Porsche, Skoda, and the core VW brand. This represents about 15% of the company's global workforce of 650,000.
The plan also aims to reduce the number of car models by half. Volkswagen wants to cut model complexity by 75% by 2035. The company will invest around 135 billion euros in new technology and products. Its target is to raise the operating margin from 3.8% to 9% by 2030. CEO Oliver Blume called it a profound transformation for the group.
Several factors have driven Volkswagen toward this dramatic overhaul. Competition from Chinese electric vehicle makers has severely hurt its profits. US tariffs have added billions in costs to the company's operations. European demand for cars has also remained weak in recent years. If these pressures did not exist, such deep cuts would not be necessary.
Investors responded positively, with shares rising more than 4% after the announcement. However, analysts say the real challenge lies in execution. Four German plants may close between 2031 and 2034 if no new production is assigned. Unions approved the plan but remain cautious about its impact on workers. The coming years will show whether this strategy can truly restore Volkswagen's competitiveness.
