Volkswagen Slashes Model Lineup and Factory Output in Major Overhaul

Volkswagen is preparing to cut its vehicle lineup in half and scale back production capacity as part of a sweeping efficiency drive. The German automaker, Europe’s largest, announced plans to reduce its annual output from 12 million vehicles before the pandemic to 9 million, a cut of 2 million units that’s already been made.

The move comes amid reports that up to 100,000 jobs could be on the line, with factory closures possible in what would be the biggest restructuring in the company’s 89-year history.

In a press release co-signed by its Executive Board, VW blamed a “changed global market environment”, a nod to tariffs and intensifying competition, for the overhaul. The company aims to become “the most attractive automotive company in the world” by 2030, focusing on the most profitable market segments.

To get there, it will streamline its model lineup by up to 50 percent and reduce equipment options by 75 percent, meaning fewer choices for buyers. VW also plans to merge its software, platform, and electronic architecture divisions to eliminate what it calls “technological parallel structures” and unlock company-wide efficiencies.

” While the announcement didn’t explicitly mention layoffs, it follows reports that VW may cut 100,000 jobs, 15 percent of its global workforce, at German plants. The metalworkers’ union IG Metall has already staged protests at 18 VW sites, including outside the Wolfsburg headquarters, with chair Christiane Benner calling the demonstrations a “clear signal to the board” amid the massive restructuring plans.