The Grupo Volkswagen will reduce its production capacity by up to 1 million vehicles. The measure takes place mainly at Europa and should be completed by 2028. The objective is to bring the group’s total annual capacity to around 9 million units, compared to a previous potential of over 12 million.
The decision was revealed by executive president Oliver Blume in an interview with Manager Magazin magazine. Ele pointed to overcapacity as unsustainable in the long term. The group had already cut 1 million units of capacity at China in recent years.
Blume cites structural change in the automotive sector
Oliver Blume explained that planning models based on past volumes are no longer sustainable. The global automotive market is experiencing a contraction in sales of electric vehicles and greater competition.
Fatores as commercial dazi on Estados Unidos, pressure from Chinese brands on China and weakness in the European market contribute to the scenario. The war on Oriente Médio also had additional impacts on supply chains.
The executive admitted that the group faces negative effects in the range of tens of billions of euros. Previous Medidas have already been adopted to reduce costs. Agora focuses on lowering the operational break-even point even further.
- Redução additional up to 1 million vehicles in global production capacity
- Corte concentrated on Europa, especially the brands Volkswagen and Audi
- Meta total annual capacity around 9 million units
- Ênfase in financial sustainability and cost reduction by 20% by 2028
- Continuidade of efforts to improve efficiency without drastically closing factories at Alemanha
Vendas falls to China and Estados Unidos
The group’s global deliveries declined in the first quarter of 2026. China recorded a sharp contraction in sales, with intense competition from local manufacturers. Nos Estados Unidos, the commercial dazi weighed in on the results.
In the previous year, deliveries on China fell by about 8%. Na América from Norte, the drop reached more than 10%. The ID electric model line faced underperformance in several markets.
Blume reinforced that the company remains competitive in products, but the operating margin needs to improve. The group seeks greater resilience in a high-risk environment.
Previous Acordos with workers at Alemanha
In 2024, Volkswagen reached an agreement with the factory council to reduce 35 thousand jobs at Alemanha by 2030. The measure involved voluntary departures and other forms of adjustment.
The group has already recorded a drop in the number of employees. Projeções indicate that, added to adjustments in brands such as Porsche, the total cuts could approach 50 thousand positions by the end of the decade.
Essas actions are part of a larger effort to adapt the cost structure to the new demand reality. The focus is on preserving jobs where possible through smart measures.
Investimento in private label in Estados Unidos
Volkswagen maintains the Scout brand design in the Estados Unidos. The initiative foresees the production of robust electric vehicles, such as pickup trucks and SUVs.
A new industrial complex is under construction at Carolina of Sul. The plant is expected to begin operating in the coming years and help mitigate risks associated with import tariffs.
Blume demonstrated confidence in Scout’s potential to strengthen its presence in the American market. The strategy aims to diversify supply and reduce dependence on imports subject to trade barriers.
The company continually evaluates the scope of the project to balance investments and risks in the current context.
Volkswagen plans to reduce global production capacity by 1 million vehicles. The additional cut, announced by CEO Oliver Blume, aims to align production with actual market demand.
Total capacity is expected to fall to around 9 million units per year. The adjustment mainly covers Europa, with a greater impact on the operations of Volkswagen and Audi.
The group had already implemented a similar reduction at China. Fatores as Chinese competition, American tariffs and slowdown in electric sales motivate the decision.
The measure seeks to improve the company’s efficiency and financial sustainability. Reduções costs by 20% by 2028 are part of the broader plan.