Volkswagen CEO to Present Major Restructuring Plan to Supervisory Board

Volkswagen CEO Oliver Blume is scheduled to present a major restructuring program to the company's supervisory board on Thursday. The plan is expected to outline significant changes to the automaker's workforce, production footprint, and investment strategy as it navigates a competitive market.

Sweeping Changes on the Table

While the company has not officially detailed the proposal, a June 26 report from *Manager Magazine* suggested the plan could be extensive. Key elements reportedly under consideration include:

• Workforce Reductions: The potential elimination of up to 100,000 jobs.
• Plant Closures: The closure or phasing-out of four plants, which employ approximately 43,000 people and represent about 750,000 units of annual production capacity.
• Investment Cuts: A reduction in investment spending to €130 billion.
• Organizational Overhaul: A potential separation of the core VW brand from the broader group structure.

These potential capacity cuts align with previous discussions at VW about reducing its overall production footprint by approximately 1 million units, according to the source material.

Hurdles and Financial Context

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The proposals are likely to face significant resistance from key stakeholders. The state of Lower Saxony, a major shareholder, and the powerful workers' council have previously expressed opposition to factory closures and large-scale layoffs. Similar plans put forth by past management teams have been withdrawn following pushback from labor and political representatives.

Funding for such a large-scale restructuring may be aided by recent corporate activity. Analysts at Barclays noted that a recent transaction involving Everllence yielded larger-than-expected proceeds, which could help finance the costs associated with headcount and capacity reductions. According to Barclays estimates, Volkswagen currently trades at a 3.5 times price-to-earnings ratio for 2026/27.

What's Next

The outcome of Thursday's supervisory board meeting will be closely watched by investors for signs of the company's future direction. Volkswagen is also scheduled to hold a call with investors and analysts on July 13, ahead of its first-half results, where more details may be shared.