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Volkswagen's Supervisory Board Approves Cost-Cutting Measures

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These are Volkswagen's Financial Goals

The VW Group is to be scaled back to an annual production total of nine million vehicles, according to further reports. That would be about one million fewer vehicles than at present—and about three million fewer than before the COVID-19 pandemic. The goal is to achieve an operating profit margin of nine percent by 2030. At the end of the first half of the year, the profit margin stood at 3.8 percent. In addition, it has been learned that investments in property, plant, and equipment, as well as in research and development, totaling 135 billion euros ($156.6 billion) are planned for the period from 2027 to 2031. A spin-off of the core VW Passenger Cars and VW Components brands appears to be off the table. According to the VW works council, co-determination structures will remain in place.

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