Christiane Benner, Deputy Chairwoman of the Volkswagen Supervisory Board, called the group's target operating margin of 8–10% by 2030 unrealistic under current conditions. She described such expectations as a departure from reality.

The reason is simple: in the second quarter of 2026, Volkswagen Group achieved an operating margin of only 4.2%. Thus, the company will need to almost double this figure in less than four years.

At the same time, Volkswagen is already preparing for massive cost reductions. Management plans to reduce European production capacity by approximately 500,000 cars per year, and continues to cut its model range and costs. The company had previously agreed to lay off more than 28,000 employees in Germany by 2030.

Several factors are putting pressure on the results: high production costs in Germany, weak demand for some electric vehicles, and growing competition from Chinese manufacturers. US tariffs remain an additional factor.

However, the main conflict now is not about the need to save money itself, but about the scale of the cuts. Benner demands a more concrete plan from the board, explaining exactly which models, plants, and expenses will be affected. Employee representatives have already stated that they are not prepared to agree to plant closures.

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