Finance
Volkswagen to Cut Capacity Further by One Million Cars, CEO Tells Manager Magazin
Published by Global Banking & Finance Review®
Posted on April 21, 2026
1 min readLast updated: April 21, 2026
Add as preferred source on GoogleQuick Summary
Volkswagen CEO Oliver Blume told Manager Magazin on April 21 that the company plans to reduce production capacity by another one million vehicles—from 12 million to 9 million annually—citing weak global demand and ongoing investment in product development.
Volkswagen to Reduce Annual Production Capacity by One Million Cars
Volkswagen's Strategic Production Adjustments
CEO Oliver Blume's Announcement
April 21 (Reuters) - Volkswagen plans to cut its production capacity by another one million cars, CEO Oliver Blume said in an interview with business news outlet Manager Magazin published on Tuesday.
Investment and Capacity Reduction Measures
"On the one hand, we're investing heavily in products. At the same time, we've already taken extensive measures. We're currently looking at cutting a further million units of capacity to reflect the global market situation," Blume said.
Global Production Targets
Overall, Volkswagen aims to cut capacity to 9 million cars worldwide per year from originally 12 million, the CEO added.
(Reporting by Linda Pasquini, editing by Thomas Seythal)
Key Takeaways
- •VW plans to cut annual production capacity by 1 million cars to adjust to the global market downturn
- •The reduction brings the target capacity down from 12 million to 9 million vehicles per year
- •This follows prior cost-saving measures, including agreed German capacity cuts (~734,000 units) and a broader 20 % cost reduction target by 2028
Frequently Asked Questions about Volkswagen to cut capacity further by one million cars, CEO tells Manager Magazin
1How much production capacity will Volkswagen cut?
Volkswagen plans to cut its production capacity by a further one million cars, bringing its total annual capacity down to 9 million cars.
2Why is Volkswagen reducing its production capacity?
The company is adjusting its output to reflect the current global market situation and demand.
3What was Volkswagen's original production capacity?
Volkswagen's original production capacity was 12 million cars per year.
4Who announced Volkswagen's new production plans?
Volkswagen CEO Oliver Blume announced the new production plans in an interview.