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🇵🇾 Paraguay /Economy & Trade

Volkswagen doubles planned job cuts to 100,000 by 2030

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Approved/passed
  • Volkswagen plans to eliminate an additional 50,000 jobs, bringing total cuts through 2030 to 100,000, with about half of the new reductions in Germany.
  • The company will halve its model range by 2035 and reduce product complexity by 75% as it responds to Chinese competition, weaker sales in China and U.S. tariffs.
  • Investors welcomed the plan, sending Volkswagen shares 6.5% higher, while the future of the Seat brand remains under review.

Volkswagen will cut another 50,000 jobs, taking its planned workforce reductions through 2030 to 100,000, after the company’s supervisory board unanimously approved Chief Executive Oliver Blume’s savings plan.

About 25,000 of the additional positions affected are in Germany, with the remainder elsewhere in Europe, a Volkswagen spokesperson told EFE. The board had rejected the plan in July, but approved it unexpectedly on Thursday after two months of negotiations involving management, employee representatives and the state of Lower Saxony, which owns a 20% stake.

The approval of the savings plan unanimously by the supervisory board represents a very positive signal for the future of the Volkswagen Group.

· Oliver BlumeThe Volkswagen chief executive welcomed the board’s approval of the restructuring plan.

The decision received a strong response from investors. Volkswagen shares rose 6.5% to 81.30 euros at the close of trading in Frankfurt. The company is dealing with intense competition from Chinese manufacturers in Europe, declining sales in China and U.S. tariffs.

Beyond the current product cycle, the future of the Seat brand continues to be assessed.

· Oliver BlumeBlume said Volkswagen had not yet decided whether to continue the Seat brand.

Volkswagen plans to reduce its model portfolio by 50% and the complexity of its offering by 75% by 2035. The company aims to sell more vehicles per model at lower cost and with improved technology. It forecasts annual sales of 9 million vehicles and an operating margin of 9% by 2030, which would require operating profit of about 31 billion euros.

The future of Seat remains unresolved. Blume said the brand’s prospects beyond its current product cycle are still being assessed, as continued investment has become more difficult. Several scenarios remain possible beyond 2030, depending on regulation, customer demand and market conditions. Volkswagen also plans to focus on more profitable segments in North America, adjust to lower growth expectations in China and expand exports to the Global South.

The automotive industry and its markets are undergoing the fastest and most fundamental transformation to date.

· VolkswagenThe company described the wider industry conditions behind its restructuring plan.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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