In an internal company interview, Volkswagen CEO Oliver Blume said the automaker’s overhead costs exceed those of comparable peers by more than 30% - a shortfall the company quantifies as roughly 50,000 positions worldwide. He emphasized that the numerical estimate serves as guidance on the scale of necessary action rather than a fixed reduction target.
Blume acknowledged that the frequently referenced figure of around 50,000 jobs worldwide is intended to illustrate the magnitude of the cost gap versus rivals. He said it offers broad orientation on what is required to bring Volkswagen’s cost base into line with competitors, but stressed it should not be read as a rigid cutback figure.
"This is not a crisis for VW, but a crisis affecting the entire motor industry," Blume said in the interview, framing the pressures as systemic rather than unique to Volkswagen.
On product strategy, the CEO said Volkswagen currently offers about 150 models across its brands. By eliminating overlapping variants and simplifying its line-up, Volkswagen aims to reduce that number to around 75 models in the future. Blume said the company will begin showing progress from 2027 onwards as reductions in complexity and a tighter focus in the model offering become visible.
Regarding factory utilization, Blume said the company does not expect competitive capacity utilization in its Emden, Hanover, Zwickau, and Neckarsulm plants during the 2030s. He added that no decisions have been made about closing any plants.
Blume warned that global market conditions are not expected to improve and that risks will intensify rather than abate. He noted that many of Volkswagen’s technical achievements are not immediately visible because they are being overshadowed by significant external financial pressures.
The CEO also said Volkswagen has not yet taken into account the costs associated with new competitors from China that are building plants in Europe. He reiterated the company’s ambition to be globally successful, to set technological standards, and to remain firmly rooted in Germany.