Grupo Volkswagen has set a target of operating profitability on sales of between 8% and 10% and a much higher net cash flow in the automotive division, which will represent more than 60% of operating profit in 2030.
This was stated by the group's CEO, Oliver Blume, during the annual general shareholders' meeting held this Thursday, where he outlined the eight strategic areas of action on which the company will focus in the coming years.
"We are making the Volkswagen Group even stronger and more competitive. To this end, we have defined a clear plan for the future. We are positioning ourselves to be even more financially resilient and to continue improving our preparedness for the future in terms of costs, structure, and technology, in order to counteract external influences and growing risks in a radically changed world," he assured.
The future plan builds on progress made in recent years and guides the Group toward a permanently volatile market environment and a scenario of stable delivery volumes. The focus is on solid products, compelling technologies, and constant work to strengthen competitiveness.
Among the levers of the plan is reducing complexity. Volkswagen wants to make its range of models and variants easier to understand, and focus even more on customer expectations in each region. This should generate higher volumes per model.
At the same time, the group will seek to consistently align the production network with market realities and have a regional, intelligent, and economical production network. Additionally, a series of systematic programs will increase the efficiency and dynamism of operational units, unlocking additional potential in all cost categories.
CHALLENGES BUT OPPORTUNITIES
Despite all the challenges, the Volkswagen Group believes it is well positioned to seize the opportunities brought by the transformation. "The situation remains demanding. Nevertheless, it depends on us: we have our strong brands and products, our clear strategy, and a team capable of delivering. We have great opportunities ahead," Blume argued.
For example, the Volkswagen Group is making progress on costs. Structured performance programs across all brands achieved progress worth tens of billions, thus largely offsetting external financial headwinds. Also contributing were collective agreements and workforce reductions, which generated sustainable cost effects of around 1 billion euros across the Group in 2025.
Including the already agreed reduction of technical production capacities, the goal is to achieve net annual cost savings of more than 6 billion euros by 2030. In 2025 alone, factory costs at Volkswagen's German plants were already reduced by an average of more than 20%.
