“Volkswagen’s future plans” through: a compromise solution that cannot conceal the problems of Germany’s automobile industry
On September 3rd, local time, the Supervisory Board of Volkswagen Group approved the “Future Plan 2030” (Zukunftsplan 2030). It was decided to reduce approximately 50,000 more jobs, bringing the total number of positions affected to about 100,000. This includes reducing the number of vehicle models and utilizing excess production capacity in Europe. The plan aims to increase the operating profit margin from the current约 3.8% to 9% by 2030, and to focus investments on core automotive business. Regarding the closure of four European factories, the Supervisory Board did not directly approve the withdrawal but provided “information” about the management’s decision, requiring Volkswagen to reevaluate its European production system by June 2027. This agreement can be seen as a compromise solution. While it avoided a full-scale labor dispute, the most difficult issues related to factory management and cost structure were left for later resolution.