Germany's VW set for 'realignment' as unions fear 100,000 job cuts

Volkswagen chief executive Oliver Blume on Friday reaffirmed his plans for the "most comprehensive realignment" in the German automotive giant's history.

He did so after reports of new cost-cutting plans led to major protests across the company's sites in Germany. 

"With our plan for the future, we are making the group even more robust and competitive, even in a highly challenging global environment," Blume said in a statement following a meeting of the VW supervisory board in Wolfsburg on Thursday. 

Management is taking "responsibility for the company's sustainable future at a time when the automotive industry is under severe pressure," he argued. "We are mitigating risks, seizing new opportunities through our own strengths and sending a clear signal of a new beginning for Germany as a place to do business."

Blume announced earlier this year that he was working on a new 2030 target for the group and intended to significantly tighten cost-cutting measures.

Up to 100,000 jobs could be cut worldwide, according to Manager Magazin, a German business magazine - twice as many as previously planned. The Bild tabloid has suggested the figure could even reach 120,000.

Four Volkswagen Group plants in Germany are facing closure, with production to be wound down at those sites by the end of 2034, the news magazine Der Spiegel reported. 

The reports are yet to be confirmed by senior leadership at Volkswagen, Europe's largest carmaker. There has been fury from the works council and trade unions, which organized protests at dozens of sites on Thursday.

Friday's press release also included a commitment from chief financial officer Arno Antlitz, who said the company aims to "continue investing in exciting electric vehicles and the latest software solutions for our customers, whilst keeping our internal combustion engine vehicles technologically competitive and strengthening our presence in the major global markets."

To achieve this, the group must consistently cut costs, harness synergies, reduce complexity and thus sustainably increase profitability, emphasized Antlitz. "The future plan is a powerful lever for this," he added.