Key facts
- Volkswagen estimates the cost of its restructuring plan at around €16 billion ($18.6 billion).
- The plan includes exploring alternatives for four German plants.
- The restructuring aims to reduce around 50,000 positions.
- Volkswagen plans to set aside up to €10 billion for job cuts by 2030.
- About €6 billion is earmarked for possible cessation of vehicle production at four plants.
Volkswagen estimates the total cost of its landmark restructuring plan, which includes job cuts and potential plant closures, at approximately €16 billion ($18.6 billion), according to a person familiar with the matter. The German carmaker, Europe's largest, is implementing its most significant restructuring to date in response to intense competition from China, rising tariffs, and overcapacity.
The plan involves reviewing the future of four German plants that are expected to run out of models within the next decade, and aims to reduce approximately 50,000 positions. German magazine Der Spiegel first reported the cost estimates.
Volkswagen intends to allocate up to €10 billion by 2030 to cover measures for eliminating around 60,000 jobs, such as retirement schemes and severance packages. An additional €6 billion is earmarked for the potential cessation of vehicle production at the four plants under review, though no final decisions have been made.