Manager Magazin first reported the overhaul and said Volkswagen, the world’s second-largest carmaker, would cut investment by about 15% to just over €130 billion (US$148 billion) over the next five years.
The magazine also said Blume and chief financial officer Arno Antlitz aim to fundamentally restructure the 89-year-old group, including by spinning off the core VW brand and parts operations into separate entities.
“The high costs are merely a symptom, not the cause. They do not address the root cause, which is weak sales,” said Ingo Speich of Deka.
“VW must bring attractive products to market that are in high demand; that would put an end to the debate over costs.”
A Volkswagen spokesperson declined to comment on “confidential documents”.
“The entire group, including its brands and subsidiaries, must undergo far-reaching change,” the spokesperson said.
Volkswagen’s works council and IG Metall, Germany’s powerful metalworkers’ union, vowed to resist any such measures.
“Should such plans go ahead, we would do everything in our power to prevent them,” they said in a joint statement on Friday.
The premier of Lower Saxony also said the state would not agree to the plan.
Porsche SE, the investment vehicle of the Porsche and Piëch families and Volkswagen’s biggest shareholder, declined to comment.
The proposals are likely to put renewed focus on Volkswagen’s unusual governance and ownership structure, which gives significant influence to labour representatives and Lower Saxony.
In its 2025 financial year, Volkswagen had a global workforce of 667,164, with almost 43% employed in Germany.
Blume’s first attempt to close plants in Germany in 2024 met fierce resistance from labour unions and forced a retreat.