Volkswagen's strategic overhaul to cut costs by 20% by 2028
Volkswagen launches major cost-cutting plan to restore profitability
Volkswagen's strategic overhaul to cut costs by 20% by 2028
Volkswagen aims to cut costs by 20% by 2028 amid challenges in China, US tariffs, and global competition. Learn about the strategic overhaul and its impact.
2026-02-16T19:57:16+03:00
2026-02-16T19:57:16+03:00
2026-02-16T19:57:16+03:00
Volkswagen has launched a major strategic overhaul, aiming to cut costs by 20% across all its brands by the end of 2028. According to German media reports, the plan was presented by CEO Oliver Blume and CFO Arno Antlitz during a closed-door meeting with top executives in Berlin. This move comes as VW faces weakening positions in China, increased tariffs in the US, and intensifying global competition.While specific optimization measures remain undisclosed, various options are under discussion, including potential plant closures and redistributing production programs among brands. The primary goal is to restore profitability to sustainable levels and enhance operational efficiency within the group.Currently, Volkswagen is under pressure on multiple fronts: in China, demand is slipping amid the rise of local electric vehicle brands; in the US, tariff barriers pose challenges; and in Europe, there's a pressing need to accelerate electrification despite high production costs. This extensive cost-saving plan aims to balance the group's financial model and secure resources for investments in new platforms and electronics.VW has yet to issue official comments, but industry insiders anticipate that the strategic review will impact nearly all divisions of the conglomerate.
Volkswagen, cost-cutting, strategic overhaul, profitability, China market, US tariffs, global competition, electric vehicles, automotive industry
2026
Michael Powers
news
Volkswagen launches major cost-cutting plan to restore profitability
Volkswagen aims to cut costs by 20% by 2028 amid challenges in China, US tariffs, and global competition. Learn about the strategic overhaul and its impact.
Michael Powers, Editor
Volkswagen has launched a major strategic overhaul, aiming to cut costs by 20% across all its brands by the end of 2028. According to German media reports, the plan was presented by CEO Oliver Blume and CFO Arno Antlitz during a closed-door meeting with top executives in Berlin. This move comes as VW faces weakening positions in China, increased tariffs in the US, and intensifying global competition.
While specific optimization measures remain undisclosed, various options are under discussion, including potential plant closures and redistributing production programs among brands. The primary goal is to restore profitability to sustainable levels and enhance operational efficiency within the group.
Currently, Volkswagen is under pressure on multiple fronts: in China, demand is slipping amid the rise of local electric vehicle brands; in the US, tariff barriers pose challenges; and in Europe, there's a pressing need to accelerate electrification despite high production costs. This extensive cost-saving plan aims to balance the group's financial model and secure resources for investments in new platforms and electronics.
VW has yet to issue official comments, but industry insiders anticipate that the strategic review will impact nearly all divisions of the conglomerate.
