Volkswagen Group plans to halve model range
Volkswagen Group could halve its model range and decrease its global workforce by 100,000 in a bid to remain competitive.
The group is proposing to reduce its model range by up to 50%, decrease production capacity and simplify vehicle specifications due to falling profits, higher costs and greater competition from Chinese brands.
It has not clarified which brands will be cut and where job losses may be incurred.
Volkswagen Group is Europe’s largest vehicle manufacturer with brands including Audi, Bentley, Cupra, Ducati, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen.
However, it is valued at £34bn compared to Tesla’s £890bn, Toyota’s £147bn and BYD’ £83bn, while sales fell a further nine per cent in the last quarter.
Transformation
Oliver Blume, chief executive of Volkswagen Group, said: “Our goal is clear: by 2030, we will make the Volkswagen Group the most attractive automotive company in the world – with iconic brands, inspiring products, leading technologies, robust financial results, reliable capital market performance and a team spirit in action.
“With our future plan, we are moving into the next phase of transformation by our own means. We are making the Volkswagen Group faster, more resilient and more competitive: through less complexity, focused technologies, an even stronger alignment of products, development and production with regional markets, the reduction of overcapacities, a streamlined equity portfolio and significantly leaner structures.
“In this way, we are creating the conditions for sustained success – even in an increasingly demanding environment.”
