Volkswagen Group cuts 100k jobs, 50% of models and plans to build Chinese cars
Volkswagen Group plans to cut 100,000 jobs globally and reduce its model variety by 50% to improve profitability and efficiency. The company is also considering producing Chinese-designed models in Europe to optimize its manufacturing footprint.
Why it matters
This restructuring reflects the significant challenges facing legacy automakers as they navigate the transition to electric vehicles and increased competition from Chinese manufacturers.
Around 100,000 jobs within the Volkswagen Group are set to be cut worldwide, with as many as 50,000 of those losses planned by 2030 in Germany alone – according to the chief executive, Oliver Blume.
The Volkswagen Group’s executive board also announced last week that it is set to reduce its model variant count by 50 per cent and complexity within those vehicles by 75 per cent to cut costs. Cars such as the Porsche Taycan Sport Turismo and Volkswagen Golf -based Jetta have been axed from certain markets, while Audi has killed off the A1 supermini and Q2 already.
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