Categories: Auto News

Volkswagen will cut its company’s costs by 20%

The crisis, which led to budget cuts, was caused by a collapse in sales in key markets, as well as overspending on software development and new platforms, Carscoops reports.

The austerity plan was presented back in January 2026 by Volkswagen AG CEO Oliver Blume. Details have not yet been disclosed, but one possible scenario is the closure of some enterprises.

Previous cost-cutting measures at the Wolfsburg, Emden and Zwickau plants did not live up to expectations.

In the first half of 2025, Volkswagen’s operating profit fell 33%. US trade duties alone cost the concern 1.3 billion euros.

This is not the first wave of layoffs: at the end of 2024, Volkswagen already announced a program under which by 2030, more than 35 thousand employees of the concern would lose their jobs in Germany alone.

It was previously reported that UAZ is testing new diesel models in extreme conditions.

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