Volkswagen Group Plans to Cut Up to 50% of Models and 75% of Variants to Focus on Core Products

Volkswagen Group plans to reduce its model lineup by up to 50% and cut derivative variants by as much as 75% to lower product complexity and concentrate resources on key models. The group’s total investment in 2025 is expected to reach €34.4 billion, including €19.4 billion in R&D spending, representing 11.8% of its revenue. According to an internal document titled "Future Blueprint 2030," the Volkswagen brand will focus on high-volume models such as the Golf, Tiguan, T-Roc, and Passat, along with core electric vehicles. It may discontinue the ID.5 electric coupe SUV and the combustion-engine coupe SUV Taigo. Audi has already begun phasing out the A1 hatchback and Q2 crossover SUV and may eliminate body styles like the Sportback fastback. Skoda, benefiting from a streamlined product portfolio and strong profitability, is not expected to undergo significant model reductions. SEAT’s strategic importance has diminished, while Cupra has emerged as one of the group’s fastest-growing brands. Porsche plans to reduce the number of derivatives within the 911 lineup. Group CEO Oliver Blume aims to restore the operating margin to the 8%–10% range, up from 4.2% in the first half of 2024. Additional measures include organizational simplification, localized R&D efforts, and capacity adjustments aligned with an annual production and sales volume of approximately 9 million vehicles. Volkswagen is also evaluating shifting China-developed models to underutilized European plants for production.