12:08 - 22.08.2026

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August 22, Fineko/abc.az. Volkswagen CEO Oliver Blume warned in an internal memo that the automaker's condition is "more than critical," stressing the urgent need for drastic cost reduction measures to keep Europe's leading carmaker afloat amid tightening market pressure.

The impending overhaul—regarded as the largest restructuring in the group's history—could involve an additional 50,000 job cuts and the carve-out of select divisions. Squeezed by fierce competition from Chinese EV makers expanding into Europe, shrinking market profits in China, and US import tariffs, Volkswagen continues to suffer from high overhead costs, which remain over 30% above those of its direct rivals.

Furthermore, four German production sites—Emden, Hannover, Zwickau, and Neckarsulm—are not expected to reach competitive capacity utilization levels even in the 2030s. Volkswagen's Supervisory Board is set to meet on September 4 to discuss the turnaround plan and evaluate potential plant closures.