According to the Daily Economic News, on July 9th local time, the management board of Volkswagen Group submitted a series of key measures to the supervisory board, including 12 action plans and the group's 2030 development goals. According to the plan, Volkswagen Group will gradually streamline its product lineup in the future, reduce the number of models by up to 50%, and further concentrate resources on more attractive and profitable niche markets. At the same time, the group will significantly optimize the configuration combination of vehicle models, reducing the maximum number of optional equipment by 75% to reduce complexity and improve development and production efficiency. At the same time, the group plans to adjust its production system and reduce the global annual production capacity from the current about 10 million vehicles to about 9 million vehicles to match changes in market demand.

Meanwhile, according to CCTV Finance, Volkswagen Group held a supervisory board meeting on July 9th to discuss a new round of cost reduction plans. This plan may involve further job cuts and adjustments to the layout of German factories, with the highest global layoff scale reaching 100000 to 120000 jobs, including German factories such as Zwickau, Hanover, Emden, and Neckarsulm all facing adjustment risks.

Behind the large-scale cost reduction, Volkswagen Group's profitability continues to be under pressure. According to the financial report, Volkswagen Group achieved sales revenue of 321.91 billion euros in 2025, a year-on-year decrease of 0.8%; The operating profit was 8.87 billion euros, a decrease of 53% from 19.1 billion euros in 2024; The operating return rate is only 2.8%.

(Author 21st Century Business Herald)