Volkswagen’s supervisory board has approved a restructuring programme that includes the elimination of approximately 50,000 jobs worldwide.
The decision was made unanimously after lengthy discussions last week. Its “Future Plan 2030″ calls for large-scale “personnel optimisation”, which the company explains is necessary to implement its transformation strategy.
The approved plan is the most extensive restructuring in the company’s 89-year history, Kallanish notes.
Four VW plants in Emden, Zwickau, Hanover, and Neckarsulm may cease operations because the company cannot guarantee competitive capacity utilisation for them from 2031 to 2034. Alternative uses for these sites will be considered, the enterprise claims.
A sustainable production structure concept for European companies must also be developed by the end of June 2027. The plan also calls for a near-half reduction in product lineups. Restructuring costs are estimated at up to €10 billion ($11.6 billion).
According to VW, the new programme will create conditions for improving the group’s efficiency and competitiveness. “The core automotive business takes centre stage and as market conditions evolve, the group plans for annual sales of nine million vehicles. The primary financial target is an operating margin of 9% by 2030. This corresponds to an operating result of approximately €31 billion, with €37 billion in overhead costs and a target of €135 billion for capital expenditure and research and development in the planning period 2027 to 2031,” it adds.
“This is a strong sign for the future of the Volkswagen Group and we are taking responsibility for our entire team, for our partners and for industrial jobs worldwide,” says the company’s chief executive, Oliver Blume. “Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”
Union IG Metall and the works council note that some decisions prevented an escalation of new labour conflict, according to German media reports. They state that the issue of spinning off the core Volkswagen brand and the VW-Komponente division into separate entities has been removed from the agenda.
Author: Svetoslav Abrossimov
