Volkswagen shares surged on Friday after its Board approved its “Future Plan 2030” as part of a major transformation.
Oliver Blume, CEO Volkswagen Group, told investors, “The Supervisory Board has unanimously approved the Executive Board’s Future Plan presented today. This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide. Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”
“Volkswagen Group enters the next phase of its transformation – from a position of strength and with a clear understanding of the opportunities ahead. With the most comprehensive and far-reaching program in the company’s history – for products, technologies, competitiveness, structures and growth areas. With our future plan, we will become even more innovative, faster, more attractive and robust – and sustainably ensure the Volkswagen Group’s success.”
Volkswagen’s Future Plan 2030 includes a 12-initiative program that will deliver the “most strategically profound transformation program” in the group’s 89-year history.
This plan involves eliminating 50,000 positions, including management roles, due to global competition, evolving demands, and technological change.
The company also intends to simplify its leadership hierarchy to make it more streamlined. This new announcement increases the total layoffs to 100,000, including the 50,000 jobs already approved.
Daniela Cavallo, Chairwoman of the Group and Central Works Council of the Volkswagen Group said in the release, “The Future Plan is a necessity to lead our Group successfully into the next decade – without placing the burden of that transformation solely on employees. In doing so, Volkswagen once again affirms that job security and economic viability carry equal weight as shared corporate goals. They are not in opposition; they are intertwined. In this spirit, co-determination within the Group is stepping up to its responsibilities in this situation as well. This provides the basis for the company to continue driving success with attractive models and, in doing so, to help secure a future for employees at every site.”
The initiative comes amid rising tariff pressures and increasing competition from China.
Volkswagen shares are down 21% since the beginning of the year.
By CEO NA Editorial Staff
