Automotive News Europe — 2025-12-06
Automotive Industry
Volkswagen Group plans to invest €160 billion ($186 billion) through 2030, CEO Oliver Blume said, reflecting belt-tightening as the automaker faces a major crisis in its two key markets, China and the U.S.
Total spending, updated annually as part of VW Group’s rolling five-year investment plan, compares with €165 billion for the 2025-29 period and €180 billion for 2024-28, with 2024 marking a peak.
Since then, VW Group, which includes the Porsche and Audi brands, has been squeezed by tariffs on U.S. imports and fierce competition in China. This has hurt profits most notably at Porsche, which sells about half its cars in just these two markets and unveiled a major rollback on its electric vehicle strategy.
Blume told the weekly Frankfurter Allgemeine Sonntagszeitung that the focus in the latest spending plan was “on Germany and Europe,” including in products, technology and infrastructure. He said talks about an extended savings program at Porsche would run into 2026.
Blume, who will step down as Porsche CEO in January to focus on the VW Group CEO role, said considerations around a potential U.S. plant for Audi depended on possible substantial financial support by Washington.
While Porsche was not expected to grow in China, he said localizing production in the wider VW Group was possible and a tailor-made Porsche model for China could make sense one day.
Blume said his recent contract extension as VW Group CEO until 2030 was a clear signal of support by the shareholding Porsche and Piech families, as well as the German state of Lower Saxony, VW Group’s two biggest investors.
“But it is true, of course, that shareholders have suffered losses since Porsche went public three years ago,” Blume said. “I, too, must face up to this criticism.”