Blume Announces Largest Transformation Plan in Volkswagen's History Amid Global Crisis

Oliver Blume, CEO of German automaker Volkswagen Group, has announced the largest transformation plan in the company's history, calling on workers to prepare for extensive cutbacks. The crisis is global, and the entire sector is suffering.

Extraordinary Works Council Meetings Next Week

Volkswagen will hold a series of extraordinary works council meetings next week, after councils demanded details on cost-cutting plans before the annual factory shutdown. Blume said Sunday: "The coming weeks will be decisive; everyone must participate."

Global Auto Industry Faces Enormous Crisis

Blume attributes the immense pressure to cut costs to a fundamental market shift and global disruptions, stressing that "the Volkswagen Group is at the heart of this crisis." Geopolitical factors, trade barriers, regulations, weak markets, and fierce competition challenge everyone without exception.

Who Will Remain Competitive?

Blume warned that the coming years will be decisive in determining who stays in the race and who leads it, urging workers to embrace a fighting spirit "for the people, our company, and Germany's competitiveness as an automotive location." The message is clear and direct.

Target Vision 2030 and Significant Cost Reduction

Blume had already announced last spring that he was developing a "target vision for 2030" for the Volkswagen Group, with a significantly tightened cost-cutting path. Since then, anxiety has spread within the group over four plants and the future of up to 50,000 additional jobs.

The group's situation is "extremely critical," as Blume put it in an interview on the internal network, pointing to an urgent need for action. An operating margin of 3.8% is coherent but insufficient to sustainably fund new technologies, products, and production sites. The coming decisions will shape the future of one of the world's largest automotive groups.