Volkswagen Slashes 50% of Models, Cuts 100,000 Jobs by 2030—July 11

Volkswagen’s executive board presented a radical restructuring plan on July 10 targeting 100,000 job cuts and closure of four German factories by 2030. The plan cuts the model lineup by half and reduces production capacity to 9 million vehicles annually from the current 10 million. Global deliveries fell 8.6% year-on-year in the second quarter, driven by a 33% sales plunge in China and weak US demand. The supervisory board, which includes labour representatives, rejected the proposal 12 to 7, leaving the plan’s fate uncertain.

Why Volkswagen is cutting half its models

Volkswagen faces mounting pressure from Chinese competitors, US tariffs, and weak EV profitability. The company’s second-quarter deliveries fell 2.08 million units, down 9% from last year. China sales collapsed to 424,300 vehicles, a 33% drop. CEO Oliver Blume said the goal is to make Volkswagen “the most attractive automotive company in the world” by 2030, but the path requires radical cost cuts and portfolio simplification.

The restructuring plan faces union resistance

Labour representatives on the supervisory board blocked the plan on Thursday, voting 12 to 7 against management’s proposal. IG Metall, Germany’s largest trade union, organised nationwide protests to stop the 100,000 job cuts and plant closures in Hanover, Emden, Zwickau, and Audi’s Neckarsulm facility. The company made no official announcement of job cuts or closures after the meeting, instead releasing only the model-reduction strategy that did not require board approval.

What the cuts mean for the product lineup

Volkswagen will reduce model complexity by up to 75%, cutting powertrains, trims, and equipment packages. The group will concentrate on high-demand segments, likely putting coupes, convertibles, and low-volume models like the Porsche 718, Audi R8, and TT at risk. Core models such as the T-Roc, Tiguan, and Golf will remain central to the strategy. Electric vehicle orders in Europe jumped 50%, now representing one-third of the backlog.

Stock impact and investor outlook

VW’s share price fell 0.6% on July 10 as uncertainty over the plan’s approval weighed on sentiment. Meyka grades VOW3.DE a B with a neutral recommendation, forecasting €86.98 in 12 months versus the current €70.98. The RSI sits at 31.34, signalling oversold conditions, while the ADX at 33.36 shows a strong downtrend. With a PE ratio of 4.07 and dividend yield of 7.4%, the stock offers value but faces execution risk on the restructuring.

Final Thoughts

Volkswagen’s plan to halve its model range and cut 100,000 jobs marks a pivotal moment for the auto industry, but union opposition has blocked formal approval. The stock trades at a steep discount with Meyka grading it B and forecasting upside to €86.98, yet the restructuring’s success remains uncertain.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.