WOLFSBURG, Germany – Volkswagen Group will invest €160 billion ($186 billion) through 2030, CEO Oliver Blume announced on Monday, confirming a significant cutback as Europe’s largest carmaker grapples with deepening crises in its two biggest markets, China and the United States.
The new five-year rolling plan (2026–2030) marks a €5 billion reduction from the previous €165 billion framework (2025–2029) and is €20 billion lower than the €180 billion plan set for 2024–2028, when spending had peaked. Blume described the move as “disciplined capital allocation” amid weak demand for electric vehicles in Europe, intensifying price wars with Chinese rivals, and looming U.S. tariffs under the incoming Trump administration.
Approximately two-thirds of the €160 billion will flow into electrification and digitalization, while the remainder will support combustion-engine platforms, particularly in growth regions such as South America and India.
The announcement comes just days after Volkswagen shocked Germany by threatening to close domestic plants for the first time in its 87-year history and amid stalled wage talks with labour unions. Analysts view the trimmed capex as evidence that Europe’s auto giant is entering a prolonged cost-cutting era to defend profitability.