Volkswagen approves €135 billion plan targeting 10% margin by 2030

Volkswagen’s Supervisory Board has unanimously approved a transformation plan targeting an operating margin of 8% to 10% by 2030, backed by €135 billion of investment between 2027 and 2031.

The Group Target Picture 2030 implies operating profit of about €31 billion at the midpoint of the margin range, based on assumed annual sales of nine million vehicles and flat revenue and volume. Volkswagen said the figure is a planning estimate rather than a guaranteed result.

The company plans to reduce overhead costs to €37 billion by 2030 from €48 billion in its 2025 planning round. It also aims to halve its model portfolio and reduce component variety by 75% by 2035, as it seeks to simplify production and improve scale and supplier costs.

Volkswagen expects to reduce global workforce capacity by about 50,000 additional positions by 2030, with roughly half of the planned reductions in Germany. Management roles are expected to fall by 25%, or about 5,500 positions. The measures would be additional to programmes agreed in 2024 covering about 50,000 positions in Germany and 20,000 globally.

The group also intends to address more than 500,000 vehicles of excess annual production capacity. Plants in Emden, Zwickau, Hanover and Neckarsulm have six to 12 months to develop competitive plans, while Volkswagen assesses alternative uses. Plant closures remain a last resort and have not been confirmed.

Chief executive Oliver Blume said the plan is organised around technology, performance and steering initiatives. Volkswagen said further details on the timing and profitability impact of individual measures would be provided at a later investor event in Paris.