Volkswagen revealed its plans extending to 2030, which encompass halving its model lineup and slashing vehicle variants by up to 75 percent to lower expenses and reduce complexity.

The disclosure came after a closely monitored session of the German automaker's supervisory board that reportedly examined one of the biggest reorganization efforts in automotive history worldwide.

Europe's leading carmaker faces strain from US tariffs, thinner margins on electric models and, most critically, intense rivalry in China, the planet's top vehicle market.

While the board convened at Volkswagen headquarters in Wolfsburg on Thursday, IG Metall staged synchronized demonstrations nationwide. Protests occurred outside the main site and at roughly 20 locations tied to Volkswagen, Audi, Porsche, MAN and Cariad.

Union officials cautioned that leadership could trigger a significant clash with employees. Volkswagen is said to be weighing cuts of 100,000 positions globally, exceeding 15 percent of staff, plus closure of four German facilities including plants in Hanover, Emden, Zwickau and Audi's Neckarsulm site.

If enacted these steps would exceed the 2024 union accord that already scheduled more than 35,000 German job reductions by 2030.

Still the updated strategy issued after the board session avoided direct mention of reported workforce reductions or factory shutdowns.

Volkswagen instead stated it would lower yearly output capacity to about nine million vehicles to address sharply heightened competition. This figure contrasts with roughly 12 million units prior to the Covid-19 pandemic and around 10 million currently.

Additional steps involve aligning offerings and technology more precisely with regional needs, adjusting production to actual demand levels, and streamlining the corporate setup along with its investment holdings.

Chief executive Oliver Blume noted in a video message that the worldwide outlook has worsened over the past year, citing geopolitical strains, tariffs, elevated expenses, growing rules and fiercer global rivalry.

He further indicated Volkswagen must eliminate surplus capacity, which may hint at possible plant closures, while adding that digital tools, artificial intelligence and shared services will boost efficiency and pace.

Chief financial officer Arno Antlitz observed that previously agreed cost savings fall short given the present economic and geopolitical climate.

He outlined intentions to enhance vehicle cost structures, markedly trim overhead, raise plant productivity and speed technology progress along with decision processes.

The group employs roughly 657,000 staff globally yet has not clarified how the capacity reduction would impact its workforce.

Volkswagen has stressed that deeper changes are essential after net profit dropped 28 percent to 1.56 billion euros and revenue slipped 2 percent to 75.7 billion euros in the quarter ending March 2026.

The coming years will determine which players shape the automotive sector going forward, Blume stated.