Volkswagen’s new future is officially underway after the German automaker’s Supervisory Board unanimously approved the Executive Board’s Future Plan 2030 on Thursday, September 3. After months of clashes with labor unions, production capacity woes, and growing market pressure from China, Volkswagen is about to drastically change its business model as it works to boost its resilience.

Volkswagen’s Future Plan 2030 includes 12 initiatives, with the primary focus being on strengthening the automaker’s base. Key figures include a targeted annual sales of 9 million vehicles and an operating margin of 9 percent by 2030. To actualize this plan, Volkswagen will “streamline its model portfolio by around 50 percent” and “reduce its offering complexity by around 75 percent.” Additionally, Volkswagen said 50,000 jobs will be eliminated by 2030 to achieve its margin goals.

Volkswagen CEO Oliver Blume.

“The Supervisory Board has unanimously approved the Executive Board’s Future Plan presented today. This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide. Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive,” said VW Group CEO Oliver Blume.

The impending cuts to Volkswagen’s lineup mean fewer variants will be produced. Volkswagen said it plans to focus on models that “excel in design and technology” while pursuing stronger economies of scale. Pressure from the Chinese market is driving much of Volkswagen’s upheaval, and the German automaker is focused on producing platforms, electronic architectures, driver-assistance systems, and software that suit the needs of both the Western and Eastern hemispheres.

“In North America, the Volkswagen Group will focus on the most profitable segments,” the report reads. “In China, the Group is adapting to revised expectations for overall growth in the Chinese automotive market and is expanding its export business toward the “Global South.”

Reducing production is another key focus of the plan, as Volkswagen executives claim that European capacity currently exceeds demand by more than 500,000 units. As a result, product production at plants in Emden, Zwickau, Hanover, and Neckarsulm is unlikely to continue regularly through 2034. Models like the ID.3, ID.4, Audi A5, and ID.Buzz are currently produced at these plants. Volkswagen says it is exploring alternative uses for these production facilities.

“Given intensifying global competition, shifting demand and technological change in the automotive industry, a consistent alignment of workforce capacity with economic reality is essential,” the report reads.

Volkswagen says that management roles will be included in the 50,000 jobs set for elimination. This restructuring of labor will include “leaner leadership structures, clear accountability, and shorter lines of decision-making” that will allegedly streamline executive processes across the company. The Supervisory Board has proposed an evolved decision-making and group structure for the Volkswagen Group as part of the plan. This also means that the Supervisory Board will “limit its reserved approval rights to measures of material significance.” Even the automaker’s real estate portfolio is being evaluated for reduction.

With today’s approval of the Future Plan 2030, Volkswagen will initiate all 12 steps immediately. Volkswagen acknowledged that discussions with labor unions and other subsidiaries will be required before portions of the plan can be enacted and said the automaker’s Executive Board will be responsible for implementation of the plan. No matter what, however, Volkswagen’s goals for its financial future are now clearly laid out.

A New York transplant hailing from the Pacific Northwest, Emmet White has a passion for anything that goes: cars, bicycles, planes, and motorcycles. After learning to ride at 17, Emmet worked in the motorcycle industry before joining Autoweek in 2022 and Road & Track in 2024. The woes of alternate side parking have kept his fleet moderate, with a 2014 Volkswagen Jetta GLI and a BMW 318i E30 street parked in his Queens community.

Extracted and lightly reformatted for readability. · Source: pt