By Dominic Chopping
Volkswagen is pushing ahead with plans to restructure the business as rising geopolitical tensions, intense competitive pressure and growing trade barriers should lead to flatlining auto markets.
"The next few years are critical," Chief Executive Oliver Blume said at the German automaker's annual shareholder meeting Thursday. "The situation remains challenging. Nevertheless, it is up to us."
Volkswagen has been working to transform its business model as it targets structural, sustainable improvements through cutting overhead costs, right-sizing its manufacturing network, reducing organizational complexity and speeding up technology development and decision-making, among other things.
Since launching the plan over 18 months ago, it has doubled down and declared that cost cuts alone wouldn't be enough to turn the company around.
The group, which houses a stable of brands that includes VW, Audi and Porsche, has cut around 1 billion euros ($1.15 billion) of costs across its brands through collective bargaining agreements and downsizing measures as it targets annual net savings of 6 billion euros by 2030.
Around 50,000 jobs are due to be cut by 2030 across the Volkswagen group in Germany.
In addition, factory costs at Volkswagen's German sites have already fallen by over 20% on average in 2025, it said.
"The plan builds on the progress of recent years and aligns the group for a permanently volatile market environment and a scenario of stable delivery volumes," the company said.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
June 18, 2026 05:38 ET (09:38 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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