Volkswagen’s Supervisory Board has approved the Group Target Picture 2030, a comprehensive transformation plan focused on enhancing profitability and restructuring the company’s operations. The plan aims for an operating margin of 8% to 10% by 2030, targeting annual sales of 9 million vehicles and an operating profit of about €31 billion.
Key elements of the plan include reducing overhead costs from €48 billion to €37 billion, lowering the investment ratio to 9% of revenue, and cutting the global workforce by approximately 50,000 positions, with around 5,500 management roles impacted in Germany. Volkswagen also plans to streamline its model portfolio by 50% and address excess production capacity of over 500,000 vehicles across its plants.
The five-year investment plan totals €135 billion from 2027 to 2031, with a focus on strengthening operations in Europe and China, targeting 2.7 million vehicles for the Chinese market by 2030. The company aims for a cash conversion rate of 60% by the same year, equating to an approximate €15 billion in cash flow.
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