Blume Wants to Finalize VW's Cost-Cutting Plan by the End of the Year

“We will do this step by step,” said Blume. “However, we are firmly convinced that this is the right path, and we as the Executive Board have made clear proposals on how the Volkswagen Group should develop in the future.” He does not, however, expect a fixed end date for the restructuring. “This transformation plan is not a project with a beginning and an end. We’re assuming this will be a lasting transformation.”

Blume: “A Crisis for the Entire Automotive Industry”

However, according to Blume, it’s not just Volkswagen that’s in crisis. “People always talk about a ‘VW crisis,’” said Blume. But that’s not accurate. “In reality, this is a crisis affecting the entire automotive industry.” Europe’s largest automaker has already responded to this.

“We have completely realigned the Volkswagen Group in recent years, which is why we are holding our own robustly against the competition. But we also see that the risks for the future are actually increasing,” said Blume. “We’re on the right track there, but we must continue to work hard on costs to earn more money with our vehicles so that we can then afford to make investments in the future.”

No details yet on job cuts

Regarding the 50,000 additional jobs that could be cut worldwide, Blume described this as an initially purely theoretical figure resulting from the targeted cost reductions. “These 50,000 are, for now, purely theoretical,” said Blume.

“We are currently working with the brands, subsidiaries, and regions to determine in detail which workforce adjustments are necessary and feasible there, and will then align this with appropriate labor costs.” No details are available yet.

The job cuts would be in addition to the savings already agreed upon for 2024. Volkswagen has already announced the elimination of 50,000 jobs across the group in Germany by 2030. 35,000 jobs are to be cut at the core brand, with the remainder at subsidiaries such as Audi and Porsche. More than 37,000 employees have already signed the relevant agreements.

VW had pledged to carry out the cuts in a socially responsible manner and is relying primarily on partial retirement and severance payments. Layoffs for operational reasons have been ruled out until 2030.

Plant Closures Only as a Last Resort

Regarding possible plant closures in Emden, Zwickau, Hanover, and Neckarsulm, Blume referred to them only as a last resort that he would prefer to avoid. There is currently no “competitive utilization” plan for the four plants for the 2030s. However, according to Blume: “There are smarter solutions than closing plants. That’s always the last resort.”

The initial goal must be to increase the competitiveness of these locations relative to the rest of Europe. Defense-related production is an option VW is considering, particularly in Osnabrück. The production of Chinese models is also being evaluated. However, this would only involve VW’s own models—which the company currently offers only in China—and only in segments where VW does not yet have any offerings in Europe.

Blume has no intention of bringing competitors like BYD or Geely into the company. Given its strong presence in China, VW has no need to do so anyway. “That’s why we’re not thinking about bringing competitors into our factories here, but rather about our own products that we have in China.”

Copyright 2026, dpa (www.dpa.de). All rights reserved