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Volkswagen Unveils Deep Restructuring Plan That Could Halve Its Model Range

The plan aims to restore profitability by cutting models, capacity, investment, leaving decisions over plants and jobs to talks with unions and regional governments.

Overview

  • Volkswagen’s CEO presented the ‘Plan de Futuro’ to the supervisory board that proposes cutting the model range by up to 50%, slashing optional-equipment complexity by up to 75%, trimming capacity toward about 9 million vehicles and reducing investment by roughly €44–50 billion.
  • The package was presented to the board on Thursday but was not approved; management has not confirmed specific plant or country decisions and the proposal is now in negotiations with works councils, unions and regional governments.
  • Union leaders including IG Metall have mobilized protests and rejected the proposal, saying it breaks the company’s prior employment guarantees; press reports and internal estimates put potential job losses at about 100,000 across the group.
  • Reports name two to four German factories as candidates for closure — Zwickau, Emden, Hannover and Neckarsulm have been mentioned — while Spain’s Seat and Cupra say there are no confirmed measures affecting Martorell or Landaben at this time.
  • Volkswagen says the move responds to slow EV demand, fierce Chinese competition and excess complexity from prior investments; the plan would reshape where models and platforms are made and could trim the group’s long-term EV and software investment plans.