Volkswagen Group is planning to implement a significant cost-reduction strategy aimed at cutting expenses by 20% across all its brands by the end of 2028. According to reports from *Manager Magazin*, the “massive” savings plan was presented by CEO Oliver Blume and CFO Arno Antlitz during a closed-door meeting with the company’s top 120 executives in Berlin in mid-January 2026. The initiative is designed to restore the automaker’s financial returns to sustainable levels while navigating a series of global economic challenges, including a notable sales slump in the Chinese market, the impact of U.S. tariffs, and an increasingly aggressive competitive landscape.
The report indicates that the 20% savings target is an ambitious goal intended to apply to all brands and cost categories, potentially equating to approximately €60 billion ($71 billion). While the specific areas for these reductions remain somewhat fluid, the strategy encompasses material costs, development, administration, and sales. Notably, the report suggests that plant closures—previously a point of intense internal debate—could remain on the table as the company seeks to lower its break-even point. This push for efficiency follows earlier restructuring efforts, including a December 2024 agreement that aimed for 35,000 job cuts by 2030 through socially acceptable means.
In response to these reports, a Volkswagen spokesperson highlighted that the group has already achieved double-digit billion-euro savings through programs launched three years ago, which helped offset geopolitical headwinds. However, the workers’ council has voiced caution, pointing to existing agreements that were intended to rule out operational layoffs and plant closures. CEO Oliver Blume is expected to provide a formal interim update on these strategic financial goals during the company’s annual results press conference scheduled for March 10.
