Volkswagen Group Slashes Product Line and Cuts Costs

Volkswagen Group announced it will cut its product lineup across all brands by approximately half, retaining only models with strong competitiveness and high profit margins in each segment. Confirmed discontinuations include the Volkswagen Touareg and Touran, Audi’s A1, Q2, TT, and R8, and Porsche’s 718 Boxster and Cayman. Additionally, available options for remaining models will be reduced by 75%, and all personalized customization services will be eliminated entirely. The group plans to lower its global annual production capacity to 9 million vehicles. As part of its cost-cutting measures, Volkswagen will eliminate 19,000 jobs in Germany by the end of this year and aims to cut around 50,000 positions globally by 2030. To date, the group has already achieved cost savings of approximately €1 billion across its brand portfolio and targets net annual cost savings of €6 billion by 2030.