In a move described as the most significant transformation in its 89-year history, Volkswagen CEO Oliver Blume is reportedly preparing a sweeping overhaul that could see as many as 100,000 jobs cut. According to Manager Magazin, the strategy includes ending production at four major German facilities—specifically in Hanover, Zwickau, Emden, and Audi’s Neckarsulm site—as current models reach the end of their lifecycle. Additionally, the company is looking to scale back its five-year investment plan by 15%, bringing it down to approximately €130 billion, while potentially spinning off its core brand and parts operations into independent entities.

This aggressive restructuring comes as Blume faces mounting pressure to steer the automotive giant through a period of intense turbulence, defined by stiff competition from Chinese manufacturers, rising trade tariffs, and the financial strain of transitioning to electric vehicles. However, the proposal has sparked immediate backlash from labor representatives. Germany’s powerful IG Metall union and the company's works council have vowed to block the measures, noting that they directly contradict existing agreements that prohibited plant closures through the end of the decade. While Volkswagen has declined to comment on the internal documents, the company acknowledged that the entire group must undergo "far-reaching change" to remain competitive in an evolving market.