Volkswagen Group has approved its Executive Board's 'Future Plan 2030,' calling it the most strategically profound transformation program in its history. The primary financial goal is to achieve an operating margin of nine percent by 2030. Part of this initiative involves cutting 50,000 jobs, including management roles, due to intensifying global competition, shifting demand, and technological change in the automotive industry. The company had previously considered shedding 100,000 roles earlier this year, citing President Trump's tariffs and losing car sales to booming domestic competition in China, the world's largest car market. In addition to workforce reductions, Volkswagen is repurposing or closing European factories, admitting its European capacity exceeds demand by more than 500,000 units. The company is assessing alternative uses for plants in Germany, specifically Emden, Zwickau, Hanover, and Neckarsulm, with decisions expected by the end of June 2027. Volkswagen is also cutting its model range by 50 percent and reducing offering complexity by 75 percent. According to German publication Wirtschafts Woche, the Spanish brand Seat will be retired, though Cupra will be retained.

Volkswagen plans to focus on a smaller number of models to produce higher volumes of cars that sell.