Volkswagen announces plans to cut up to 50,000 jobs and trim its global vehicle lineup by 50% by 2035 to lower costs and focus on higher-margin models.

Volkswagen announced a restructuring plan that could eliminate up to 50,000 jobs and slash its global model lineup by half by 2035.

Restructuring details

The German automaker said it will reduce its vehicle portfolio by 50% to concentrate on higher‑margin models, especially in North America. The company expects the changes to lower production costs and improve economies of scale. Affected plants will see workforce reductions as part of the cost‑saving drive.

Executive changes

On Oct. 1, Marco Schubert joined Volkswagen’s Extended Executive Committee and will report directly to Group CEO Oliver Blume. Schubert will oversee the North American market as the company implements its new strategy.

Additional VW initiatives

Volkswagen also said it will expand driver‑assistance features in U.S. models, adding lane‑change assistance, rear pedestrian detection and predictive adaptive cruise control. The automaker highlighted a push toward “rugged” vehicles for the U.S. market, citing higher profit potential.

Industry context

Other manufacturers are adjusting to similar pressures. Ford is investing $1 billion in its Kentucky plant to boost truck and SUV output, while Tesla faces a federal probe over its Cybercab rollout. Honda confirmed an investment in rare‑earth‑free magnet maker Niron Magnetics to secure supply chains.

“We are aligning our portfolio with future demand,” said Marco Schubert, newly appointed North America executive. “The restructuring will position Volkswagen for sustainable growth in a rapidly changing market.”