Volkswagen Group CEO Oliver Blume described the company’s situation as "more than critical" in an internal interview published ahead of a series of plant meetings. While the automaker remains operational, Blume emphasized an urgent need for further measures to bolster its financial position.
Blume cited a 3.8% operating margin as solid under current conditions but insufficient to fund future technologies, product development and site operations over the long term. He noted that prior cost reductions—including an average 20% cut in German factory expenses last year—have not gone far enough to address structural challenges.
The executive had previously announced a new "Target 2030" strategy, with plans to intensify austerity measures. He reiterated that the package would be finalized before the summer recess, following reports of potential cuts affecting four plants and up to 50,000 jobs across the group.
Nine plant-level meetings are scheduled through late August, including stops in Wolfsburg, Emden, Zwickau and Hannover. The sessions will allow management to address workforce concerns directly. The first meeting is set for August 25 in Wolfsburg, with the final session concluding in Hannover on August 31.
