German car giant Volkswagen said on Thursday that its board had cleared a proposal to cut another 50,000 jobs, adding to the 50,000 cuts already agreed as the company undertakes its biggest restructuring. The combined reduction of 100,000 jobs would be the largest such overhaul in the global car industry.
Chinese carmakers are also expanding their exports to Europe, news agency AFP reported.
Volkswagen also said that management and unions had agreed that the long-term future of its four German factories in Hannover, Emden, Zwickau and Neckarsulm could not be assured. The company said it was considering other possible uses for the sites. The German automaker is facing growing pressure from US tariffs, lower profit margins on electric vehicles and, most importantly, strong competition in China.
Volkswagen Targets 9% Operating Margin by 2030 Amid Restructuring Plans
Volkswagen aims to achieve an operating margin of 9% by 2030, contingent on annual sales of approximately 9 million vehicles, according to a report by Bloomberg.
In light of this restructuring initiative, the company has identified that its manufacturing facilities in Emden, Hannover, Neckarsulm, and Zwickau lack competitive production strategies for the years following the discontinuation of their current models, which is scheduled between 2031 and 2034.
As a result, Volkswagen is now exploring alternative uses for these four sites to enhance operational efficiency and adapt to future market demands.
The planned reductions are reportedly expected to affect both managers and factory workers. The company will also simplify its management structure, aimed at making decisions faster.
