Volkswagen CEO Oliver Blume secured a unanimous 20-to-nothing supervisory board vote on September 3 for the deepest restructuring in the company's 89-year history, a feat that eluded his three predecessors since 2006. The plan includes cutting roughly 50,000 more jobs, shrinking the model portfolio by about 50% by 2035, and targeting a 9% operating margin by 2030, with €135 billion earmarked for capital spending and research between 2027 and 2031. To win approval, Blume conceded to deferring decisions on four German plants and dropping a proposal to carve out Volkswagen Passenger Cars and Components. The board also agreed to limit its own reserved approval rights to align with standard DAX practice, a structural change that reduces its intervention in management decisions. Volkswagen shares rose as much as 10% in Frankfurt on September 4, but remain down over 20% for the year, reflecting ongoing challenges in China and excess European capacity of more than 500,000 units.
Volkswagen AGBoard unanimously approves restructuring plan targeting 9% margin and €135B capex, boosting shares 10%.
Volkswagen AG VZO O.N.Board unanimously approves restructuring plan targeting 9% margin and €135B capex, boosting shares 10%.
