By ANGHARAD CARRICK, BUSINESS NEWS EDITOR and ROB HULL, MOTORING EDITOR
The board of Volkswagen has agreed to cut a total of 100,000 jobs by 2030 as part of a sweeping restructuring programme aimed at countering the impact of tariffs and intensifying competition from Chinese rivals.
The German group, which includes Audi, Porsche, Skoda and the VW brand, said the overhaul would be 'the most extensive transformation programme' in its 89-year history.
The planned cuts include the 50,000 jobs already agreed, taking the total reduction to 100,000 positions by the end of the decade.
The firm, which employs around 660,000 people, did not provide further details on the timing of the cuts or how they would be distributed across its brands and regions.
Volkswagen also outlined plans to halve its vehicle line-up by 2030, prioritising its 'most compelling vehicles' and increasing production volumes of each model to help lower costs.
The move could trigger up to four factory closures in Germany and may result in 76-year-old brand Seat being axed entirely.
'A fundamental adjustment of the global workforce capability is necessary' to preserve the company's competitiveness, Volkswagen said.
Volkswagen plans to cut jobs and halve its vehicle line-up in a bid to counter falling sales
Volkswagen has been hit hard by falling sales in China, once one of its biggest markets, amid rising competition from domestic brands such as BYD.
Meanwhile, US sales have declined partly because of the impact of President Donald Trump's tariffs on imported vehicles.
'This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide,' Volkswagen Group chief executive Oliver Blume said.
The Wolfsburg-headquartered company is considering the future of four German plants, where it said production capacity exceeds demand.
Blume said no new models would be allocated to the Emden, Zwickau, Hanover and Neckarsulm factories unless costs can be brought down.
The overhaul will also accelerate platform sharing, with models across the Volkswagen Group set to share more mechanical and electrical architecture, software and components.
