Volkswagen continues its large-scale restructuring of its assets, this time the subject of a strategic change is its industrial and marine engine division. The German car giant announced the conclusion of an exclusive agreement with the American investment company Bain Capital for the sale of 51% of the shares in its subsidiary Everllence (known until last year as MAN Energy Solutions), writes the publication Spiegel. The deal, which is expected to be finalized by the end of the year, is valued at an impressive 7.4 billion euros, with Volkswagen retaining a minority stake of 49% in the company.
This step comes at a time of serious pressure on the concern's core automotive business, caused by weak market results in China and complicated transition to electric mobility. CEO Oliver Blume described the sale as the right move, which will allow the car group to focus on its core business while providing significant financial resources for the ongoing transformation. However, in order to get the green light from the unions, the German concern's management has negotiated clear guarantees for Everllence's five main plants in Germany, which will remain operational without forced layoffs at least until the end of 2030.
In parallel with the disposal of peripheral assets, Volkswagen is also launching a drastic cost-cutting program. The restructuring plan foresees a large-scale reduction in the workforce with the dismissal of up to 50,000 employees globally by 2030. In addition, the carmaker intends to reduce its production volumes in European plants by an additional 500,000 vehicles by the end of the decade. This comes on top of the previously announced production cut of 1 million cars by 2028, which outlines one of the deepest structural crises in the brand's modern history.