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Volkswagen Weighs €60 Billion Cost Cuts by 2028 as Internal Talks Broach Plant Closures

Labor leaders reject plant closures under a 2024 pact.

Overview

  • Manager Magazin reports, citing internal sources, that VW leadership is targeting a 20% group-wide cost reduction by end‑2028, roughly €60 billion, after CEO Oliver Blume told top executives the breakeven must fall and called the goal “the ambition.”
  • Volkswagen has not confirmed specific measures, stating only that Blume will give an update at the March 10 annual results presentation.
  • VW’s works council chair Daniela Cavallo says closures are unacceptable and points to the December 2024 agreement that excludes plant shutdowns and forced layoffs; Audi’s works council also dismisses closure speculation.
  • S&P shifted VW’s outlook to negative late last year, and CFO Arno Antlitz recently raised about €6 billion in liquidity, including through receivables sales, underscoring financial pressure.
  • The reported push would come on top of ongoing efficiency programs, including a plan to reduce 35,000 roles in Germany by 2030 and a delayed VW brand profitability target now set for 2029, with prior savings already in the double‑digit billions.