The Volkswagen Group is undergoing the deepest restructuring in its nearly nine-decade history. The Wolfsburg-based group's supervisory board has officially approved a new strategic transformation plan, which includes the elimination of another 50,000 jobs by 2030. The decision comes just months after the German leadership approved a similar measure, targeting the first wave of 50,000 staff cuts.
Combined, the two steps will lead to the elimination of 100,000 positions globally by the end of the current decade — or about 15% of the auto giant's entire workforce. The drastic measures are part of a strategy called internally "Future Plan 2030," designed to reduce fixed operating costs and generate liquidity in an increasingly hostile international context marked by falling demand, tariffs and extreme competitive pressures.
In addition to massive staff cuts, Volkswagen's strategy involves a fundamental reorganization of its product range. The group has officially approved a plan to halve the number of models in its portfolio by 2035. The measure is intended to eliminate unnecessary overlaps between the group's various brands and channel development resources only to vehicles in high demand.
The change doesn't stop at eliminating less profitable cars. Volkswagen will reduce equipment levels and configuration options by 75%. Instead of endless configurations that increased complexity on the assembly lines and inflated logistics costs, the manufacturer will offer standardized and optimized packages. The goal is to accelerate the pace of production, simplify the supply chain and achieve economies of scale essential for maintaining price competitiveness.
Although Volkswagen officials are currently avoiding openly announcing the direct closure of production facilities in Germany, internal documents that have become public and market analyses indicate a bleak scenario for several historic facilities.
According to industry sources, the list of factories in the red zone includes:
● Zwickau – the first plant converted exclusively for electric vehicles, whose lines are suffering due to lower-than-expected demand in the EV segment.
● Emden – another pillar of electric car and sedan production.
● Hanover – the traditional center of commercial vehicles.
● Neckarsulm – flagship plant in the Audi group.
The executive leadership is engaged in intense negotiations with unions and employee representatives. Even though a temporary truce has been agreed to avoid major shareholder protests, the fact that several models manufactured at these facilities will no longer have a direct successor after 2030 raises serious questions about the long-term future of the four facilities.
The Romanian car market reflects in miniature the problems that Volkswagen faces globally. German brands – and especially Volkswagen – have dominated Romanians’ preferences over the past decades, both in the top of new imported cars and on the second-hand market. However, recent dynamics indicate an important paradigm shift.
1. The Asian offensive changes the hierarchies
Chinese manufacturers, led by giants such as BYD, MG, Chery or Geely, have massively accelerated their expansion in Romania. Brands such as BYD have managed to quickly enter the top of Romanians' preferences, gaining increasing market shares and ranking in the top of registered brands.
The quality-price-equipment ratio offered by Chinese manufacturers has proven extremely attractive for Romanian customers, especially in the context of rising inflation and shrinking purchasing budgets.
2. The electrical segment, hit by subsidy cuts
The increase or decrease in the value of Rabla Plus bonuses has directly affected the sales of expensive electric vehicles. While models in the Volkswagen ID electric range (such as the ID.3 or ID.4) started at high prices and depended heavily on subsidies to be competitive, the Chinese models offer alternatives at significantly lower costs, coming with extended warranties and very rich standard features.
3. Pressure on both internal combustion and hybrid engines
Even in the area of cars with combustion engines or hybrids – where VW traditionally sold high volumes with models like the Golf, Tiguan or Passat – Asian brands are attacking aggressively. Compact SUVs and city cars from China or South Korea are gaining ground in the local market, offering modern technology at a price that European manufacturers, blocked by high production costs in the West, are barely able to match.
Volkswagen's restructuring is a clear signal that the era of uncontrolled expansion and excessive diversification is over for European automakers. To survive competition from China and global economic pressures, Volkswagen must once again become an efficient manufacturer focused on volume, simplified processes and common platforms.
Whether the strategy will succeed or whether Asian brands will continue to bite off the German group's market share, including in traditional markets like Romania, depends directly on the speed with which the decisions from Wolfsburg will be implemented.