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VW’s Emden plant’s future uncertain.Sept. 4, Berlin: It sounds like a Tiny Fey inspired comedic move—a retreat to move forward. VW’s supervisory board is serious. It will trim Volkswagen’s footprint to focus on higher earnings. The stated goal is a 9% margin. This target, if hit, means increased profits, which are considered necessary for VW’s future health.
VW’s supervisory board, therefore, approved CEO Oliver Blume’s cutbacks known as VW’s Future Plan 2030. If implemented, it will slice VW Group auto output to 9 million vehicles, and reduce VW’s worldwide workforce by 50,000 in addition to the 50,000 cuts planned back last March. VW employs an estimated 650,000 across all its brands including Audi, Porsche and Skoda.
VW also plays a numbers game. It says it will trim its number of models 50% by 2035 and reduce the complexity of its lineup by 75%. It will focus on its “most compelling vehicles.” Meanwhile, the company is still contemplating the future of four German factories.
It’s still unknown how VW’s restructuring will unfold. VW hasn’t provided a specific statement claiming how it will achieve its leaner, meaner size. A refocus on North America is expected.
VWoA Shakeup Again
Audi’s Marco Schubert takes over as VW Group CEO for North America replacing Kjell Gurner on Oct. 1. Shubert becomes the 12th North American VW chief since 1993. Automotive News reports Kjell’s lavish spending on the 2027 Atlas cut its earnings from $10,000 for each Atlas sold to $5,000. The new Atlas, as with the recently revised Tiguan, looks and feels more luxurious than the 2026 model. Sometimes more of a good thing is wonderful, unless you’re VW’s beancounter.
At Audi, Vito Paladino became Audi of America president last April. Reuters reports (Sept. 3) that VWoA is exploring an American-made B-segment body-on-frame pickup while expanding its hybrid offerings.