According to Manager Magazin quoting inside sources, Volkswagen Group has been discussing the possibility to cut its total expenses by another 20% by the end of 2028. This decision may have serious consequences for the automaker, who has been implementing another similar plan since the fall of 2024.
The company has yet to confirm any of these reports, but market observers believe it may end up having to shut down multiple factories to hit the 20% cost reduction target. Aside from Volkswagen Cars, this move may affect other VW Group brands such as Audi, Škoda, Seat, Cupra, Porsche, Lamborghini and Bentley, not to mention Volkswagen’s own commercial transports division.
According to the insiders, VW Group CEO Oliver Blume and CFO Arno Antlitz have already presented the new three-year anti-crisis plan to the investors. It blames the company’s current financial troubles on China increasingly losing interest in European imports, EV segment growth slowing down worldwide, and the United States starting tariff wars.
We will hopefully hear more about the situation on March 10, when Volkswagen is expected to have its annual press conference and performance report.
