Volkswagen Group Slashes Models and Capacity to Navigate Market Shifts

Volkswagen Group is implementing a major restructuring, planning to cut its vehicle lineup by nearly half and reduce the number of optional configurations by 75%. Regarding components, the number of headlight variants will be reduced by up to 60%, front bumper parts halved, and main seat module variants cut by 30%. For premium brands such as Audi, Bentley, and Lamborghini, seat component variants will be slashed by 90%, steering wheel options reduced by 60%, and available aluminum wheel designs trimmed to half their current number. Meanwhile, Volkswagen has closed its Brussels plant in Belgium and converted its Dresden facility in Germany into a technology and R&D center. In China, the Nanjing, Ningbo Plant 1, and Urumqi factories have either been shut down or are gradually ceasing operations. The group plans to reduce its global annual production capacity from 12 million vehicles to 10 million, and further down to 9 million. Additionally, Porsche has announced it will cut 5,000 jobs by 2035 and delay future salary increases.