Volkswagen AG unanimously approved a cost-cutting package on Thursday that will see 50,000 positions eliminated in the coming years, APA reports.
The German automaker said it has more than 500,000 vehicles of excess capacity across Europe, while future production has yet to be secured at its Emden, Zwickau, Hanover, and Neckarsulm plants, putting their operations at risk from 2031 onward. The company's 2030 plan sets a target of a 9% operating margin within the next four years, equivalent to an operating result of around €31 billion. It also envisages €37 billion in overhead costs and €135 billion in capital expenditure and research and development between 2027 and 2031.
In addition, Volkswagen plans to reduce its model portfolio by around 50% and its offering complexity by roughly 75%.
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