Volkswagen, whose CEO mocked Tesla in 2017, now plans to cut up to 100,000 jobs by 2030, shrink its model range, idle several car plants, and convert its Osnabrück factory to produce Iron Dome air-defense components.
German automaker Volkswagen is now preparing one of the most sweeping restructurings in its corporate history, a dramatic reversal from the confidence its leadership expressed toward Tesla less than a decade ago.
In 2017, then-Volkswagen chief executive Matthias Müller publicly brushed off comparisons with the U.S. electric-car maker, asking reporters, "Why compare us with Tesla at all? They sell 80,000 cars and have billions in losses." At the time, the remark framed Tesla as a small, loss-making upstart rather than a credible long-term rival to Europe's largest carmaker.
By 2026, the competitive dynamic has shifted decisively against the legacy giant. Volkswagen now plans to cut up to 100,000 jobs by 2030, shrink its model range, and halt vehicle production at several factories. The company is also converting its Osnabrück plant to manufacture components for the Iron Dome air defense system, signaling a broader pivot away from its traditional automotive focus.
The post concludes that the electric-vehicle competitor Volkswagen once laughed at and underestimated has now become the market force driving the most profound transformation the German manufacturer has ever faced.
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