Volkswagen Group has approved its sweeping Future Plan 2030, a major restructuring programme that will see the company dramatically simplify its business as it faces growing pressure from Chinese competition, weaker demand and global trade challenges.

By 2035, Volkswagen plans to reduce its model portfolio by around 50% and cut product complexity by approximately 75%. The aim is to focus on fewer, higher volume models while reducing development and production costs.

The overhaul will also affect the workforce. Volkswagen plans to cut around 50,000 additional jobs, including management positions. These reductions come on top of approximately 50,000 cuts already agreed, meaning the Group’s overall workforce reduction could reach around 100,000 positions.

Europe’s production network will face major changes too. Volkswagen currently has more than 500,000 vehicles of excess annual capacity, and future production at plants including Emden, Zwickau, Hanover and Audi’s Neckarsulm site is not guaranteed beyond the early 2030s.

The Group is targeting annual sales of 9 million vehicles and an operating margin of 9% by 2030, compared with 3.8% in the first half of 2026. Volkswagen also plans to invest €135 billion between 2027 and 2031 in products, technology and research and development.

The strategy places greater emphasis on profitable growth in North America and a more region specific approach in China.

For car buyers, the result could eventually mean a much simpler Volkswagen Group line up. For employees and European factories, however, one of the biggest transformations in the company’s history has only just begun.