The Volkswagen Group will tighten the reins on its spending over the next few years. CEO Oliver Blume has confirmed an investment plan of €160 billion ($257 billion CAD) through 2030, down compared to previous projections. The main reason is the troubled waters the auto giant is sailing in in two essential markets: China and the U.S.
Budget tightening in a context of global fragility
Specifically, Volkswagen is adjusting its rolling five-year plan annually. For 2025–2029, the manufacturer had planned for €165 billion ($265 billion CAD), and for 2024–2028, €180 billion ($289 billion), a period marked as the "peak year" for investments.
Since then, the group — which notably encompasses Porsche and Audi — has been facing pressure from American tariffs on imports and fierce competition in China. The repercussions are particularly heavy for Porsche, for which nearly half of its sales come precisely from those two markets.
Priority to Europe
In an interview with the Frankfurter Allgemeine Sonntagszeitung, CEO Blume emphasized that the new budget envelope focuses on Germany and Europe, both for products and for technologies and infrastructure.
The executive also stated that establishing an Audi plant in the United States is possible but will largely depend on the level of financial aid that Washington might grant.
Porsche: Limited growth in China, but openness to domestic production
Still according to Blume, Porsche does not anticipate growth in China in the short term. However, localizing production of Volkswagen Group models within China could become a strategic option. He didn’t rule out the possibility that a Porsche model developed exclusively for the Chinese market might eventually emerge.