HAMBURG (dpa-AFX) - The Volkswagen Group intends to further significantly reduce its production capacities in light of the challenging market environment. "We are currently looking at up to an additional million in capacity to reflect the global market situation," Group CEO Oliver Blume told "Manager Magazin" on Tuesday. "This would bring us down from a total invested capacity of over twelve million to a sustainable nine million vehicles per year." This affects the company's sites worldwide. In China, as in Europe - particularly regarding the core VW passenger car brand and the Audi subsidiary - VW had already scaled back production capabilities by one million vehicles each.

"Overcapacities are not sustainable for our company in the long term," Blume said. "And in today's market and competitive landscape, the volume planning of the past is unrealistic." According to Blume, a decision on whether plants must be closed as a result has not yet been made. "There are smarter methods than immediately closing a plant. In Osnabrück, for example, we will end the production of VW vehicles next year - a decision we made in 2024." In that case, VW is in talks with defense companies to potentially relocate production there and take over employees. However, nothing has been finalized yet.

"We have a clear plan for how to reduce our capacities in a socially responsible manner," Blume said regarding the job cuts already underway. Volkswagen is currently cutting a combined 50,000 jobs at its core brand and especially at subsidiaries Audi and Porsche in Germany to reduce costs. According to Blume, current profit levels are insufficient to permanently sustain investments in models and technology. Nevertheless, the manager did not rule out further job cuts. "It is our duty to examine everything closely," Blume said. "We are looking at all cost items. This is a fundamental part of our responsibility for this company."

In 2019, the VW Group's plants were designed for twelve million vehicles per year. "But since the pandemic, the average has been nine million vehicles in completely transformed markets," Blume said.

In the U.S., VW is considering whether Audi can share the newly built factory of the electric brand Scout - though according to Blume, a decision is still pending./men/err/jha/