VW’s Own Labour Chief Claims That The Company’s Profit Goals Are Unrealistic

Volkswagen Group is considering closing four German plants, cutting 100,000 jobs, and streamlining its model lineup to address severe profitability challenges.

As the Volkswagen Group manoeuvres to achieve an operating return on sales of 8% to 10% by 2030, the company faces significant internal opposition regarding its financial objectives. According to Bloomberg, Deputy Chair of the Supervisory Board Christiane Benner has dismissed these targets as unrealistic, labeling them a “fantasy detached from reality”. This skepticism is underscored by the company’s recent performance, as the automaker reported an operating return on sales of only 4.2% during the second quarter.

Volkswagen faces internal pushback as labor leader Christiane Benner dismisses CEO Oliver Blume’s 2030 profitability targets as unrealistic. With overhead costs 30% higher than competitors, VW is considering cutting 100,000 jobs, closing four German plants, and reducing European production capacity by 500,000 units. Amidst intense competition in China and U.S. tariff pressures, Benner demands a revised, transparent cost-cutting strategy before the supervisory board considers any further action.

The German automaker is considering a U.S. pickup truck entry, potentially targeting the midsize segment to boost growth. Meanwhile, labor leadership is pushing back against proposed 2030 profitability goals, demanding more transparency and rejecting plans for factory closures or aggressive job cuts.

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