Volkswagen is confronting what its own leadership describes as an existential crisis, with six of the nine board members reportedly agreeing that the group’s current trajectory is unsustainable.
The consensus among top executives signals a dramatic shift in tone at the German automaker, which is now preparing for a comprehensive overhaul involving job cuts, plant closures, and the divestment of non-core business units.
The internal alarm comes as investors and analysts grow increasingly skeptical that traditional cost-cutting programs alone will suffice to secure the company’s future.
With the annual general meeting approaching, shareholders are expected to press management on whether the proposed restructuring is ambitious enough to restore profitability and competitiveness in a rapidly evolving automotive landscape.
According to reports cited by Welt, the board’s unified stance reflects deep concern over the automaker’s margin pressure and strategic positioning.
Executives argue that only a fundamental transformation can prevent further erosion of value, emphasizing that incremental improvements are no longer viable options.