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Volkswagen to slash models, equipment, and annual production in major restructuring
🇬🇷 Greece /Economy & Trade

Volkswagen to slash models, equipment, and annual production in major restructuring

From Ta Nea · () Greek

Translated from Greek, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Volkswagen is undergoing a radical restructuring to become the world's most attractive automaker by 2030.
  • The plan involves reducing its model range by up to 50% and limiting vehicle equipment levels by about 75% to cut costs and boost competitiveness.
  • While job cuts and factory closures were rumored, the approved plan focuses on optimizing production capacity and administrative structures, with no immediate decisions on workforce reductions or plant shutdowns in Germany.

Volkswagen is embarking on a significant overhaul of its business model, aiming to establish itself as the "most attractive automaker in the world" by 2030. This strategic realignment includes a drastic reduction in its vehicle lineup and a streamlining of equipment options to enhance efficiency and competitiveness, particularly against Asian manufacturers.

The supervisory board has approved a recovery program presented by CEO Oliver Blume. This plan targets a reduction in the model portfolio by as much as 50% and a decrease in vehicle equipment levels by approximately 75%. The company also intends to lower its surplus production capacity to 9 million vehicles annually and optimize its administrative structures. The investment portfolio will be re-evaluated based on performance and strategic importance.

Chief Financial Officer Arno Antlitz emphasized the urgent need for action, stating that existing cost-reduction programs are insufficient due to tariffs, geopolitical risks, and escalating competition. He stressed that the company must "radically readjust" its business model. Despite earlier speculation about potential job cuts affecting up to 120,000 employees and the closure of five German plants, the approved plan does not contain definitive decisions on such measures, according to Handelsblatt.

Blume stated, "We are making the Volkswagen Group faster, stronger, and more competitive." The company's objective is to align production, development, and investments with its core automotive activities to prevent further market share loss amid intense competition, especially from China.

DistantNews Editorial

Originally published by Ta Nea in Greek. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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