Volkswagen Group has outlined a new long-term investment plan as the company deals with major pressure in two of its biggest markets.
CEO Oliver Blume announced that the automaker will invest 160 billion euros by 2030, a slightly lower amount than previous plans as the company adjusts its strategy during a difficult period.
The updated spending plan shows a clear reduction from earlier investment cycles. In past years, Volkswagen allocated 165 billion euros for 2025–2029 and 180 billion euros for 2024–2028, with 2024 described as the peak year.
The latest cutback reflects the impact of rising tariffs in the United States and intense competition from local brands in China, both of which have affected the company’s earnings.
Porsche, one of Volkswagen’s most profitable brands, has been hit the hardest. Nearly half of its global sales come from China and the U.S., making it especially vulnerable to shifting market conditions. The brand has already scaled back its electric vehicle plans as a result of weaker profitability.
Blume said the new investment focus will center on Germany and Europe, particularly in manufacturing, technology upgrades, and infrastructure. He noted that discussions on further cost-saving measures at Porsche will continue until 2026.
As he prepares to step down as Porsche’s CEO in January to fully focus on leading Volkswagen, Blume said the company is still studying whether Audi should build a plant in the U.S. Any decision would depend on strong financial incentives from the American government.
Although Porsche does not expect major growth in China, Blume acknowledged that producing more vehicles locally and developing a China-specific model could be options for the future.
He added that his contract extension as Volkswagen CEO until 2030 reflects confidence from the company’s largest shareholders, even as they continue to express concerns over recent financial losses.