VW Group Plans to Halve Car Models by 2030 in Major Restructuring

The Executive Board of the Volkswagen (VW) Group has outlined a future plan that will see the automotive giant gradually reduce its global model portfolio by 50 percent by 2030, restructuring its business to maintain its position amid intensifying competition. The company stated it has achieved key targets in products, technology, and regions during a three-year process of “fundamental realignment” while navigating external financial headwinds. However, VW acknowledged that more work is required before it becomes a “more resilient, efficient, and agile” company. CEO Oliver Blume and CFO Arno Antlitz explained the restructuring aims to lower costs and steer the group’s rate of return towards a target of 8 to 10 percent. To achieve this, VW will not only cut the number of models offered but also reduce complexity by 75 percent. This will be accomplished by decreasing the number of powertrain options, trim variants, and equipment packages, while eliminating parallel structures that allow multiple brands within the group to develop the same technology separately. The company also plans to adjust its production capacity to match global demand, targeting an output of 9 million vehicles per year, roughly in line with the group’s deliveries in 2024 and 2025. Reports suggest VW is considering up to 100,000 job cuts and the closure of four factories in Germany. While popular models like the Polo, Golf, T-Roc, and Tiguan are likely to remain in production, more niche derivatives such as the T-Roc Cabriolet and the ID.5 coupe SUV are considered insufficiently profitable. Sales of the ID. Buzz have also reportedly fallen short of expectations. VW’s expanding product catalogue in China is also likely to face significant reductions.