Volkswagen Group is preparing a new cost-reduction programme targeting savings of around €60 billion—roughly 20% of its cost base—by the end of 2028, according to a report by Manager Magazin. The measures could affect staffing levels, operations, and possibly manufacturing facilities.
The magazine said Chief Executive Oliver Blume and Chief Financial Officer Arno Antlitz presented the plan to about 120 senior executives during a retreat in mid-January. “We must lower the break-even point,” Blume reportedly told attendees, outlining a goal of reducing costs across all brands and subsidiaries. Specific measures were not detailed, but participants understood that savings would be required “everywhere,” the report said.
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Potential actions could go beyond the previously announced reduction of 35,000 jobs at the core Volkswagen brand. While plant closures have not been officially confirmed, some participants reportedly suggested they should remain an option, particularly given underutilised capacity at certain sites. The comments reflect views attributed to anonymous insiders rather than formal company policy.
Volkswagen has pursued cost discipline under Blume for several years, saving about €15 billion in 2024 and targeting €18 billion in 2025. However, the group still faces high planned investments—about €160 billion over five years—and substantial debt, estimated at €260 billion. Credit rating agency S&P Global downgraded the company’s outlook to negative in late 2025, raising concerns about financing costs.
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Internal tensions could complicate further restructuring. Works council chair Daniela Cavallo has opposed plant closures, citing a December 2024 agreement intended to protect jobs and ensure socially acceptable adjustments. She said the compromise “explicitly rules out plant closures and redundancies for operational reasons.”
Labor relations may come under renewed strain as works council elections at Volkswagen and Audi approach in March. Observers say management may delay controversial decisions until after the vote, potentially setting the stage for further negotiations over the company’s future cost structure.