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New Delhi: The Volkswagen Group plans to reduce its global portfolio by up to 50 per cent by 2030, coming as part of a big restructuring of its business. The group will also reduce the number of trim options offered across its lineup by up to 75 per cent and reduce production capacity as it tries to lower costs and ease down operations. 

Volkswagen hasn’t named the models that are going to be discontinued. The product changes are part of 12 initiatives that the VW Group plans to implement by 2030. The brand said it will slowly “streamline” the model line-up by up to 50 per cent, making its portfolio more focused on the  “most attractive market segments”.

Volkswagen Group is also aiming for a 75 per cent reduction in what it calls “offering complexity. This includes cutting down the number of trims, equipment packages and optional features available across its range. The brand feels it will allow it to focus resources on products and technologies that offer the greatest value to customers and the business.

The automaker hasn’t specified which models or brands will be affected by the overhaul. Volkswagen Group’s portfolio includes Volkswagen, Skoda, SEAT, Cupra, Audi, Porsche, Bentley, Lamborghini and other brands.

Volkswagen Group CEO Oliver Blume noted that the brand is aiming to make the company quicker, “more resilient and more competitive” whilst making it less complex, focused tech and even stronger alignment of products, development and production with regional markets.

As part of the restructuring, Volkswagen also intends to streamline the number of vehicle platforms and electronic architectures used across its brands. The brand is hence going to focus more towards technologies that it feels will be scalable.

The group also plans to lower its annual production capacity to around 9 million vehicles. In the pre Covid-19 pandemic days, Volkswagen had the ability to build nearly 12 million vehicles annually, although that figure has already been reduced by roughly 2 million units. 

Further, production cuts are planned, particularly across Europe and China. The restructuring comes amid mounting pressure from Chinese automakers, stricter regulations, tariffs and geopolitical challenges, all of which have significantly impacted profitability. Volkswagen says its profits have nearly halved since 2021.

The cost-cutting programme could also lead to further workforce reduction and facility closures. About 50,000 job cuts had already been announced under previous restructuring efforts. However, recent reports suggest the total could rise to as many as 100,000 positions. 

Although Volkswagen has not confirmed these figures, reports indicate that facilities in Hanover, Emden, Zwickau and Audi’s Neckarsulm plant are among those being evaluated. It remains unclear whether these factories will be shut down or sold to other operators.