Volkswagen Targets 10% Margin by 2030 With €135B Plan, 50,000 Job Cuts

Volkswagen targets an 8%–10% operating margin by 2030 , implying approximately €31 billion in operating profit based on annual sales of 9 million vehicles.

The company approved a €135 billion investment plan for 2027–2031 while aiming to cut overhead costs to €37 billion, or 12% of automotive revenue.

Volkswagen expects to eliminate roughly 50,000 additional positions by 2030 , reduce its model portfolio by about 50%, and address more than 500,000 vehicles of excess production capacity, potentially including plant closures.

Volkswagen ETR: VOW3 said its Supervisory Board has unanimously approved the Group Target Picture 2030, a broad transformation plan aimed at improving profitability, reducing complexity and reshaping its production, technology and organizational footprint.

Chief Executive Officer Oliver Blume said the plan is built around 12 initiatives in three areas: technology, performance and steering.

The company’s target is an operating margin of 8% to 10% by 2030, based on annual sales of 9 million vehicles and flat revenue and volume assumptions.

At the midpoint, Volkswagen is targeting operating profit of about €31 billion.

Volkswagen plans to reduce overhead costs to €37 billion by 2030 from €48 billion in its 2025 planning round.

The target would bring overhead costs to 12% of automotive revenue, compared with 16% currently, according to Chief Financial Officer and Chief Operating Officer Arno Antlitz.

The group also approved a five-year investment plan of €135 billion for 2027 through 2031, approximately €30 billion below the current planning round.

Volkswagen aims to reduce its investment ratio to 9% of revenue by 2030.

In addition to previously announced workforce measures, the company said it expects to reduce global workforce capacity by roughly 50,000 positions through 2030.

About half of those positions are expected to be in Germany, with management roles reduced by one-quarter, or about 5,500 roles.

Blume said Volkswagen had already eliminated 1,100 management positions during the current year.

The new reduction is on top of programs already under way covering 50,000 positions in Germany and about 20,000 globally under agreements reached in 2024, according to the executives.

Operating-margin target: 8% to 10% by 2030

Midpoint operating-profit target: approximately €31 billion

Five-year investment plan: €135 billion from 2027 through 2031

Overhead-cost target: €37 billion, or 12% of automotive revenue

Additional workforce adjustment: approximately 50,000 positions by 2030

Volkswagen plans to streamline its model portfolio by around 50% and reduce component variety by 75% by 2035.

Blume said the company intends to focus resources on fewer products while tailoring platforms, electrical and electronic architectures, advanced driver-assistance systems and software for the Western and Eastern hemispheres.

Antlitz cited overlapping product offerings as an example of complexity the group intends to eliminate.

He said Volkswagen believes it can address market segments with fewer, more targeted models while improving scale and supplier costs.

The company also said excess production capacity of more than 500,000 vehicles must be addressed.