Production Revolution at Volkswagen: 22 Factories Are Being Divided into 5 Clusters

Volkswagen Group is going through a radical transformation in its production network. “Future Production Governance”(Future Production Management) This new approach, called Volkswagen Pkw, Skoda, Seat/Cupra and VW Nutzfahrzeuge, 22 factories into five regional clustersseparates. The main goal of this strategic move is to reduce costsand significantly increase efficiency in production processes. With the new system, planning, logistics and product management will now be carried out under a holistic and single management line in each region, instead of parallel processes between brands. This simplification aims to bring fewer silos and clearer accountability.

Start in Iberia: Compact Electric Models on the Way

The first application area of ​​the new management architecture is Iberian Peninsula(Spain and Portugal). As of January 2026, Andre Kleb will be responsible for all production facilities in this region and will report to both Volkswagen and Seat/Cupra brands. Management is eliminating a separate production responsibility position at Seat/Cupra as part of the simplification. Under the coordination of regional teams, a wave of models focusing on compact electric vehicles is on the way:

  • 2026:Martorell facility, ID.PoloAnd Cupra Ravalwill produce the models.
  • 2026:in Pamplona ID.CrossAnd Skoda EpiqIt will be on the tapes.
  • 2027:At the Palmela facility ID.1The production of the model is planned.

Quick Decision and Global Expansion

This new management structure has the potential to reduce authority conflicts by allowing decisions to reach the production site faster. Depending on the success in Iberia, Volkswagen aims to gradually expand this integrated system to other regions. This step-by-step architecture is considered an important step towards increasing operational excellence while supporting the brand’s electric vehicle transition.

RayHaber 🇬🇧