Volkswagen CEO Oliver Blume has reaffirmed his commitment to the German site despite steep sales drops and a strategy to eliminate roughly 50,000 jobs in Germany by 2030, while calling for sharp productivity gains.
In an interview with Bild am Sonntag, Blume said global over‑capacity is being put to the test. With declining operational results he pointed out that world markets have shifted dramatically. “Developing, building, and then exporting cars from Germany no longer works” he said, noting that the various geographical regions have evolved too far to keep the old model.
Blume confirmed the 2030 goal to reduce 50,000 jobs in Germany in a socially responsible manner. “We will continue to put capacities to the test” he added in reference to possible plant closures. Over‑capacity has become a financial drag, so factories are now linked to “clear factory cost targets”. This applies not only to Germany and Europe but also to China.
While he believes the “Made in Germany” brand still pays off, the costs are too high. “We have a higher cost structure, even in wages, and we must offset that with greater productivity” he insisted.
Blume also criticized the political environment, citing excessive energy costs and regulatory burdens. Yet he sees glimmers of hope: order backlogs have risen sharply and customers are responding well to the products. “The restructuring will continue” he said, emphasizing that the company remains on a path to recovery.