The Volkswagen Group plans to reduce its global model line-up by up to 50 percent by 2030 as part of a wider restructuring of its business. The group will also cut the number of variant options offered across its portfolio by up to 75 percent and reduce production capacity as it looks to lower costs and simplify its operations. Volkswagen has not named the models that will be discontinued.
- Future line-up to focus on the ‘most attractive market segments’
- Annual production capacity to fall to around 9 million vehicles from 10 million
- Platforms and electronic architectures will also be consolidated
Volkswagen Group to halve model line-up by 2030
The product changes form part of 12 initiatives that the Volkswagen Group plans to implement by 2030. The company said it will gradually “streamline” its model line-up by up to 50 percent, concentrating its portfolio on “the most attractive market segments”.
Volkswagen is also targeting a 75 percent reduction in what it calls “offering complexity”, which includes the number of equipment options available across its models. The company said this will allow it to focus investment and development resources on products that deliver the “greatest added value for customers and the highest value contribution” to the group.
The group has not confirmed which models will be affected by the reduction. Its portfolio spans Volkswagen, Skoda, SEAT, Cupra, Audi, Porsche, Bentley and Lamborghini, among other brands.
“We are making the Volkswagen Group faster, more resilient and more competitive through less complexity, focused technologies and an even stronger alignment of products, development and production with regional markets,” said Volkswagen Group CEO Oliver Blume.
VW Group to reduce platforms, production capacity
Volkswagen also plans to reduce the number of platforms and electronic architectures used across the group, aiming to increase the use of common technologies across its brands. The company will focus on technologies with what it describes as “high scaling potential”.
Annual production capacity will be reduced to around 9 million vehicles. Before the Covid-19 pandemic, the group had an established capacity to produce around 12 million vehicles annually, which has already been reduced by about 2 million units. Volkswagen said further reductions are planned in Europe and China.
The restructuring comes as Volkswagen faces increased competition from Chinese carmakers, regulatory pressures, tariffs and geopolitical tensions. These factors have contributed to the group’s profits falling by around half since 2021.
Layoffs at Volkswagen Group could hit 100,000: Reports
The restructuring could also result in further job losses and factory closures. Around 50,000 job cuts had already been outlined under earlier restructuring measures. Reports suggest Volkswagen could increase its planned workforce reduction to a total of 100,000 jobs and close four plants in Germany. However, the group has not confirmed further job cuts or factory closures.
The plants reportedly under consideration for closure are Hanover, Emden, Zwickau and Audi’s Neckarsulm facility. It remains unclear whether the sites would be closed or whether Volkswagen could seek buyers for them.
Uday Singh
Dipan Sur
Viraaj Bhatnagar
