Volkswagen has unveiled what it describes as its "biggest ever" turnaround plan, a comprehensive package aimed at reshaping the group’s product portfolio, cutting costs and accelerating its shift to electric mobility. The proposal, presented by the company’s executive leadership, includes a series of measures such as a multi‑billion‑euro cost‑reduction programme, a reallocation of capital toward battery and software development, and the consolidation of certain production sites across Europe. Management argues that the steps are essential to restore profitability after years of declining margins, the fallout from the diesel emissions scandal and mounting competition from new‑energy rivals.
The plan, however, has run into stiff resistance from two powerful quarters. Germany’s trade unions, which represent thousands of VW workers, have warned that the restructuring could lead to significant job losses, plant closures and a weakening of workers’ bargaining power. At the same time, the state of Lower Saxony – which holds roughly 20% of VW’s shares and is the automaker’s second‑largest shareholder – has signalled that it will scrutinise any proposal that threatens employment in the region, where many of the group’s key factories are located. The supervisory board, which includes representatives from management, shareholders and employee groups, is scheduled to convene in a week’s time to discuss the overhaul and decide whether to give it the green light.
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If approved, the plan would mark a decisive shift in Volkswagen’s strategic direction, committing the company to a faster electrification timeline and tighter cost discipline. If rejected, the group could be forced to revisit its restructuring roadmap, potentially delaying its EV ambitions and leaving it vulnerable to rivals that are already scaling up electric production.
