By 2030, the capacity of the European plants is to be reduced by a further 500,000 vehicles. VW is said to be the “world’s most attractive automobile manufacturer”.
REUTERS/Carmen Jaspersen
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VW-Boss Oliver Blume defended its austerity measures at the group’s general meeting. “In 2026, the conditions in the automotive industry will have become even more difficult,” he said at the virtual shareholder meeting, according to the previously published speech manuscript. “Our situation is tense and demanding.” The company has to react to this.
Blume announced a “Target Image for the Volkswagen Group 2030” in the spring and named the first key points for the realignment. “Our business model, which has been successful for decades, no longer works today. We have to develop it further,” he said. We are working on that. “We will make further important decisions together with our supervisory board in the summer.” The goal is to be the “world’s most attractive automobile manufacturer” by 2030. The return on sales should then be 8 to 10 percent.
At the same time, Blume gave a positive assessment of the efforts made so far. With new models such as the just introduced electric ID. Polo is the brand on the right track. “Our products put us at the forefront of the competition again. However, we don’t earn enough money with them.” The ongoing austerity programs have already had an impact. However, this was counteracted by the new burdens caused by tariffs, trade barriers and geopolitical risks.
VW is on track to cut 50,000 jobs across the group by 2030. In the core brand alone, where 35,000 jobs are to be eliminated, the workforce will be reduced by 19,000 by the end of 2026, Blume reported. 28,000 voluntary resignations have already been firmly agreed, and factory costs at German VW locations will have fallen by more than 20 percent in 2025.
At the same time, Blume confirmed its plans to further reduce the capacity of the plants and reduce excess capacity. By 2030, Blume wants to reduce the capacity of its European plants by a further 500,000 vehicles – in addition to the current capacity reduction of one million vehicles by 2028. There should be just as many in China, meaning that one million cars will be eliminated worldwide. Blume initially did not provide any details about specific measures.
The shareholders’ meeting will once again take place purely digitally – as in the past two years. The board of directors and supervisory board are not even in Wolfsburg, but are connected from Munich. Blume last welcomed its own shareholders in person in 2023. (APA/dpa)
