Volkswagen Faces Existential Crisis: Half Its Models and 100,000 Jobs on the Chopping Block

Volkswagen is in the fight of its life. The German automaker is considering cutting its model lineup by up to 50%, slashing production capacity, and laying off roughly 100,000 workers as it struggles to survive a historic downturn. S. tariffs have hammered the company's bottom line.

Profit margins have been cut in half between 2021 and 2025, forcing CEO Oliver Blume to weigh drastic measures.

Following a supervisory board meeting this week, VW confirmed it would gradually eliminate up to half its models, focusing only on the most important market segments. Production capacity would drop from 10 million vehicles a year to 9 million. Sources say Blume is considering closing four German plants, Hanover, Emden, Zwickau, and Audi's Neckarsulm site, and doubling previously planned job cuts to 100,000.

" In Wolfsburg, hundreds of workers blew whistles, waved red flags, and marched under a banner reading "gemeinsam stark", strong together.

The cuts don't stop at the model level. Even for the vehicles that survive, Volkswagen plans to reduce available options by up to 75%, signaling an end to the era of heavy customization at brands like Porsche. The Touareg and Touran are already dead, the T-Roc Convertible is slated for 2027, and Audi has sunsetted the A1, Q2, TT, R8, and Q8 E-Tron.

Meanwhile, the company faces pressure not just from unions but from the Porsche and Piech families, whose core investments have lost tens of billions in market value. VW shares have fallen by more than half in the last three years.