Volkswagen on the Brink: CEO Blume Eyes Chinese Imports and a Clash with Labor Over 100,000 Job Cuts

Volkswagen CEO Oliver Blume unveils drastic plan to cut up to 100,000 jobs by 2030, targets German plants, and considers importing cheaper cars from China amid falling profits and stock collapse.

Oliver Blume is navigating one of the most treacherous periods in Volkswagen’s history, and the endgame may come with a public revolt against his own workforce. The chief executive has drawn up plans to eliminate up to 100,000 positions worldwide by 2030—double what was previously mooted—and is prepared to force the issue even if the supervisory board resists. Insiders say he is willing to call an extraordinary general meeting of shareholders should the board block the move when it convenes on July 9, 2026.

The job cuts would hit four German plants: Hannover, Zwickau, Emden, and Audi’s Neckarsulm site. Work council chairwoman Daniela Cavallo and IG Metall have already vowed “bitter resistance,” but the math leaves little room for compromise. In the first quarter of 2026, revenue slipped 2 percent to €75.7 billion, while operating profit plunged 14.3 percent to €2.5 billion. The operating margin fell to 3.3 percent from 3.7 percent a year earlier, dangerously far from the full-year target range of 4.0 to 5.5 percent.

One strategic answer lies in the East. Blume is exploring whether to import vehicles developed in China and sell them in Europe—starting with the ID.Era 9X, a range-extender SUV co-developed with SAIC. The plan would initially rely on pure imports, with local assembly in Zwickau under consideration further down the road. The cost gap is stark: cars built at Volkswagen’s Hefei site in China are nearly 50 percent cheaper to produce than those made in Germany. That advantage could help shore up margins in the core European business, where overcapacity and falling profitability are squeezing the bottom line.

The stock, however, tells a grim story. Shares closed Wednesday at €70.58, just 1.99 percent above the 52-week low of €69.20 set on July 1. The decline has been relentless: down 8.62 percent in seven trading days, nearly 22 percent in 30 days, and 33.48 percent since the start of the year. From December 2025’s 52-week high of €109.10, the paper has shed more than 35 percent. A relief bounce on Thursday lifted the price to €72.20, a gain of 2.3 percent, but it barely registers against the broader collapse.

Technical indicators flash extreme oversold: the relative strength index has fallen to 20.1, deep in territory that typically precedes a corrective rally. Yet the fundamental backdrop offers little fuel for a sustained recovery. The annualized 30-day volatility already stands at 28.33 percent, and the political risks are mounting.

The European Commission is drafting a “Made in Europe” label designed to shield local manufacturers from Asian technology. An import-only model for the ID.Era 9X could run straight into regulatory headwinds. The supervisory board is expected to weigh those geopolitical factors alongside the restructuring plan when it meets next week.

Volkswagen itself has not commented on the China-sourcing proposal, nor on the figures behind the “Target 2030” cost blueprint. What is clear is that Blume is testing his options. If the board refuses to back the 100,000 cutbacks, an extraordinary shareholder meeting would mark an unprecedented rupture with labor representatives and the state of Lower Saxony, which holds a powerful blocking minority. The July 9 decision will determine whether Volkswagen tries to restore profitability through consensus or through a full-blown power struggle.