After weeks of struggle, the Volkswagen supervisory board has agreed on a joint restructuring package for Europe's largest car manufacturer. Volkswagen boss Oliver Blume spoke of a “strong signal for the future of the Volkswagen group”. Below is an overview of the most important points of the package:
Investments
When it comes to investments, Volkswagen is putting the red pen. Investments of 135 billion euros are planned from 2027 to 2031, which is around 30 billion euros less than in the five years up to 2030. The aim is to increase the return to nine percent by 2030, from 3.8 percent in the first half of 2026. This corresponds to an operating result of around 31 billion euros. However, the supervisory board still has to vote on details of the specific investments.
Volkswagen wants to slim down its investment portfolio and divest itself of further company shares. VW recently sold a good half of the ship engine manufacturer Everllence to the US investment company Bain.
Model range
The red pencil should also be applied to the model range. The number of models is expected to fall by half by 2035. On the one hand, models that are rarely sold are being removed from the range, for example VW took the Touran off the market. In addition, there are combustion vehicles, which are unlikely to be sold in the European Union from 2035 onwards. In addition, complexity should be reduced by 75 percent, for example by using the same parts. Volkswagen expects this to lower costs.
Greater efficiency
Volkswagen also wants to become faster. To this end, various areas such as development, production, procurement, quality assurance and sales should work more closely together. The company expects this to result in greater efficiency, better processes, more speed and a noticeable increase in competitiveness.
An important aspect of this is a leaner management structure. Managers should also be measured using a uniform bonus system.
Plants and personnel
The red pencil is placed on personnel costs. Around 50,000 jobs are to be cut across the group, including management jobs. Plant capacities in Europe are to be reduced by 500,000 vehicles annually. There is until June 2027 to develop a concept for a competitive production structure. The supervisory board has noted that no subsequent occupancy can be guaranteed for the plants in Neckarsulm, Zwickau, Emden and Hanover from 2031 to 2034, it said.
North America and China as important markets
The company expects growth from its North American business. The current sales boss Marco Schubert is supposed to ensure momentum there; among other things, a pickup and an SUV are planned, which are to be built in the US plant in Chattanooga. The company concentrates on the most profitable segments.
The currently crisis-ridden Chinese business will be adjusted to the changed expectations of overall market growth. VW cars from China are to be exported to the “global south”.
New group structure
The most controversial point in advance was the board's plans to separate the Volkswagen brand from the group. This was seen as an attack on the VW law. On this point it is now said that the Supervisory Board is asking the Board of Directors to develop a model for an “advanced decision-making and group structure” that enables a “clear allocation of responsibilities and faster, more efficient and modern group management”. The employee representatives explained that a spin-off of the VW core brand and the components division had been taken off the table and that the attack on the co-determination structures had been successfully averted. However, the Supervisory Board should limit its reservations of approval to measures of material importance for the entire group. The committee currently has to approve all investments of more than 50 million euros.
