Volkswagen Streamlines Board Structure

[Organizational Restructuring] Volkswagen plans to reduce the number of board members for its core brands from 29 to 19 by 2026, aiming to achieve cost savings of EUR 1 billion.

Key Move: Significant Streamlining of Management Structure

Volkswagen Passenger Cars, Škoda, and SEAT/Cupra will each retain only four board members going forward, responsible respectively for CEO, finance, sales, and human resources. R&D, procurement, and production will be centrally managed by the Wolfsburg headquarters.

Key Figures: EUR 1 Billion Cost Reduction Target

Of this, EUR 600 million will come from workforce optimization, and EUR 400 million from improved production efficiency. The group also intends to consolidate its more than 20 global plants into five production regions, each managed by regional managers overseeing multiple brands.

Strategic Rationale: Addressing Slowing Growth and Competition from Chinese Automakers

This move is part of a structural reform led by CEO Thomas Schäfer, designed to enhance efficiency, eliminate redundancies, and directly confront the dual pressures of weakening demand in Europe and the overseas expansion of Chinese car manufacturers.