Volkswagen’s supervisory board has approved a far-reaching restructuring plan put forward by chief executive Oliver Blume, marking one of the biggest overhauls in the carmaker’s history. The plan reshapes how and where the group builds vehicles in Germany over the coming decade.
Under the plan, production is set to wind down at several German sites on a staggered timeline stretching into the 2030s. The company pointed to significant overcapacity in Europe and said it would reduce the number of models it offers as it adjusts to changing demand.
The changes affect tens of thousands of workers, making the plan a sensitive one for a company that is among Germany’s largest employers. Management framed the moves as necessary to keep the group competitive as the industry shifts toward electric vehicles and new technology.
Volkswagen has faced pressure from rising costs, tougher competition and a difficult transition to electric cars. Streamlining production and trimming its lineup are meant to improve efficiency and focus resources on the most important models.
The board’s unanimous backing gives management a mandate to proceed, though carrying out changes of this scale will take years and require careful handling with workers and their representatives.
The plan underscores how deeply the shift to electric mobility is reshaping Europe’s carmakers, with even the largest players rethinking their long-standing industrial footprint.
