Factbox-Main points of Volkswagen’s restructuring plan

Volkswagen AG's supervisory board has approved a major restructuring plan called "Future Plan 2030" to restore the company's competitiveness and ensure its future. The plan, implemented due to declining demand and intense competition from China, involves cutting 50,000 more jobs across the group, doubling current layoffs. It may also deemphasize production at plants in Emden, Zwickau, Hanover, and Neckarsulm, with potential alternative uses for these sites.

The company aims to cut its model range by roughly 50% and complexity by 75% by 2035, focusing on a smaller range of higher-volume models and achieving greater economies of scale. VW intends to tailor platforms, electronics, and driver assistance systems to cater to both Western and Eastern market needs. The company seeks to sell 9 million vehicles yearly and aims for an operating margin of 9% by 2030, up from 3.8% in the first half of 2026.

To achieve cost reduction, procedures simplification, and productivity enhancement, a group-wide efficiency program will be executed. The group will concentrate on its most profitable segments in North America, adapting to revised growth expectations in China and expanding exports to the Global South. A substantial investment of one-digit billion euros is planned between 2027 and 2031 for brand strengthening, technological improvement, and competitiveness enhancement.

The plan includes restructuring management structures for flatter decision-making and simpler group operations, resulting in a third reduction in businesses and holdings owned by the group. A unified performance and bonus system for executives will foster accountability. While labor representatives support the plan, they emphasize the need to maintain job prospects for all plants and ensure job preservation for as many employees as possible.