BERLIN, Sept 3 - Volkswagen AG's supervisory board has signed off on a sweeping restructuring initiative named "Future Plan 2030," which the company describes as necessary to regain competitiveness and secure its long-term position. The program addresses workforce size, plant utilization, product strategy, financial targets and organizational design.
Workforce reductions
As part of the package, Volkswagen said it will reduce its headcount by a further 50,000 positions across the group, including roles at management level. The company stated this step effectively doubles the current scale of layoffs already underway within the organization.
Plant capacity and reshaping production allocations
Volkswagen warned it cannot guarantee production allocations for certain European sites - specifically its plants in Emden, Zwickau, Hanover and Neckarsulm - for the period 2031 to 2034. The group said it is evaluating alternative uses for these locations. The company also reported that its European factories presently carry more than 500,000 units of excess capacity.
Product simplification and platform alignment
The restructuring includes a major reduction in product breadth. Volkswagen aims to trim its model range by about 50% and to cut complexity by roughly 75% by 2035. The goal is to concentrate on a smaller portfolio of higher-volume models to increase economies of scale. The group will also tailor platforms, electronics and driver assistance systems to the differing requirements of Western and Eastern hemispheres.
Financial and efficiency objectives
On the sales and margin front, Volkswagen set an objective of achieving annual volumes of 9 million vehicles. The company is targeting an operating margin of 9% by 2030, up from 3.8% reported in the first half of 2026. A group-wide efficiency program is planned to reduce costs, simplify procedures and improve productivity.
Market focus and exports
Volkswagen said it will sharpen its emphasis on the most profitable market segments in North America. It also acknowledged revised growth expectations in China and intends to broaden exports to markets in the Global South.
Investment commitments
The plan contemplates a three-digit-billion euro investment over coming years to strengthen brands and technologies and to enhance competitiveness. Within that framework, Volkswagen specified 135 billion euros in capital expenditure and research and development spending for the period 2027 through 2031.
Organizational redesign and governance
Organizational changes under the plan include flatter management structures, accelerated decision making and a simpler group architecture. Volkswagen said it will reduce the number of businesses and holdings it owns by about one third. The group also plans to implement a unified performance and bonus system for executives to drive accountability.
Labour response
Labour representatives said they back the need for reform but argued that employees should not shoulder the entire burden of the restructuring. They emphasized the importance of creating future prospects for all plants and of preserving as many jobs as possible.
Currency note
The company provided a currency conversion reference: $1 = 0.8600 euros.
This plan lays out explicit numerical targets for workforce reductions, product simplification, plant allocation reviews and financial performance while detailing investment and organizational change measures. The company framed the package as essential to restore competitiveness amid slumping demand and rising competition from China.