Volkswagen Group to halve vehicle lineup, cut options
Volkswagen Group has announced an immediate, large-scale contraction plan that will reduce its brands' vehicle lineups by up to 50% and trim configuration options by as much as 75%.
Wolfsburg, Germany – Volkswagen Group revealed an immediate, sweeping contraction plan aimed at significantly streamlining its operations. The automotive giant intends to cut the number of models across its various brands by as much as 50%, focusing only on vehicles within the "most attractive market segments."
Further changes include drastically reducing the number of available options and configurations for the remaining vehicles, with a maximum reduction of 75%. Volkswagen stated that future investments will prioritize products and technologies that deliver the most added value to customers and the highest returns for the group, concentrating resources on models with higher sales volumes and better profit margins.
The model reduction is already underway. For instance, the Volkswagen Touareg and Touran MPV have been discontinued, and the T-Roc Cabriolet is slated for cessation in 2027. Audi has recently exited the market with its A1 small car and Q2 small crossover, following earlier production stops for the TT, R8, and Q8 e-tron. Porsche's 718 Boxster and 718 Cayman ended production in October last year, and the first-generation Macan will conclude its run by the end of this month.
In addition to the product and configuration cuts, Volkswagen Group has reduced its annual production capacity to 9 million vehicles, significantly lower than pre-pandemic levels when capacity was around 12 million. The company has not yet officially commented on reports suggesting the potential closure of four factories or plans to expand workforce reductions beyond the previously announced 50,000 employees.