Volkswagen Group Launches Major Restructuring: Halves Executive Ranks, Consolidates Plants Amid EV Transition Pressure

Facing declining performance and mounting pressure from its electric vehicle (EV) transition, Volkswagen Group has announced a major restructuring plan: by summer 2026, it will reduce the number of board members in its core brand cluster from 29 to 19 and consolidate over 20 global plants into five production regions. The goal is to cut costs by €1 billion by 2030, with €600 million of that coming from workforce optimization. In 2025, Volkswagen’s global sales dipped slightly by 0.5%, but sales in China fell by 8%, with battery-electric vehicle (BEV) deliveries plunging by 44.3%. Sales in North America also declined by 10.4%, with a 13.6% drop in the U.S. market alone. As a result, Volkswagen reported its first quarterly loss in nearly five years in Q3 2023, with a net loss of €1.07 billion. Its net profit for the first nine months of 2023 plummeted by 61.5% year-over-year. Despite an early start in electrification, the company’s efforts have underperformed in the Chinese market, leaving the group facing significant challenges ahead.