15:07 - 10.07.2026
July 10, Fineko/abc.az. Volkswagen launches a large-scale restructuring program aimed at reducing costs and increasing efficiency. The company plans to almost halve the model range, reduce production capacity from 10 to 9 million cars a year and simplify the equipment by roughly 75%.
The reform may affect up to 100,000 jobs and become the biggest in the modern history of the concern. According to sources, the closure of up to four factories in Germany is being considered.
The company's CEO, Oliver Blume, has explained the measures by the deteriorating market situation, increased competition (especially from Chinese manufacturers), high costs, and regulatory pressures. In recent years, company's profitability has decreased by almost half.
Reports of potential layoffs have already sparked protests from employees and a strong reaction fromtrade union IG Metall, which has warned of the risk of a labor conflict. However, the plans have not been officially confirmed.
