Volkswagen (VWAGY) is preparing to halve its model lineup and cut annual production capacity to 9 million vehicles as Europe's largest automaker confronts tariffs, geopolitical pressure and intensifying global competition.
The group outlined a 12 initiative restructuring plan after a July 9 supervisory board meeting. Volkswagen could reduce its global model lineup by up to 50%, cut equipment options and vehicle variants by as much as 75%, and lower capacity from roughly 10 million vehicles annually.
Volkswagen owns brands including Audi, Porsche, koda, SEAT, Bentley and Lamborghini. It sells passenger vehicles, commercial vehicles and financial services across major global markets.
The overhaul will also align software systems, electronic architectures and vehicle platforms across Eastern and Western operations, reducing duplicated engineering work. Reuters reported the broader restructuring could affect up to 100,000 jobs.
The global situation has continued to deteriorate, CEO Oliver Blume said. CFO Arno Antlitz added that Volkswagen must substantially reduce complexity.