Volkswagen Group has unveiled a new efficiency plan aimed at reducing total costs by €1 billion by 2030, with a strong focus on the brands considered the backbone of the group. The announcement was confirmed by Volkswagen brand CEO Thomas Schaefer, according to Automotive News.
A key element of the strategy is workforce reduction. The German group has already reached an agreement with labor unions to cut more than 30,000 jobs by the beginning of the next decade. The decision followed tough negotiations at the end of 2024 and helped save two German production sites that would otherwise have been shut down.
Cost cuts and group-wide reorganization
Schaefer said Volkswagen aims to save around €600 million by 2030 through workforce-related measures alone. An additional €400 million in savings is expected to come from operational and production efficiencies, Automobilwoche reports.
Read also: BMW posts slight sales growth in 2025
“Increased synergies within the company, especially among the core brands, are necessary to achieve these targets,” an internal source said on condition of anonymity. In practice, this means broader use of shared platforms and components across the Volkswagen Brand Core, which includes Volkswagen, Volkswagen Commercial Vehicles, Seat, Cupra and Skoda.
Management structures are also changing. Plants will now be managed at a regional level, regardless of the models produced. Volkswagen has defined five main regions: Central Europe (including Germany), the Iberian Peninsula, Eastern Europe and India, North America and South America. According to sources, restructuring has already started in Spain and Portugal, including the Autoeuropa plant, home of the Volkswagen T-Roc, the brand’s best-selling model in Europe in 2025.
Lower investments and a push toward electrification
At the same time, Volkswagen has decided to cut its investment budget to around €160 billion. Group CEO Oliver Blume acknowledged that declining revenues made this adjustment necessary. Heavy investments in electric vehicles, autonomous driving and software-defined vehicles have yet to pay off, even though EV sales are rising.
Data from the first 11 months of 2025 show that Volkswagen overtook Tesla in Europe to become the region’s top EV seller. However, market share in China continues to decline, which is why China will remain managed separately.
In 2025, just over 18% of Volkswagen cars sold in Europe were electric, up from 12.3% in 2024. Growth remains below the 25% target set by the European Commission. To accelerate adoption, Volkswagen plans to launch the ID.Polo in 2026, priced from €25,000, followed by a €20,000 entry-level EV, currently referred to as ID.1.
On the technology front, at CES Las Vegas 2026, Volkswagen announced an expanded partnership with Qualcomm, gaining access to advanced semiconductor and AI-based solutions designed to boost infotainment and connectivity through the Snapdragon Digital Chassis.
Photo: Volkswagen Group
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