Volkswagen Also Thinks They Have “Too Many Models”

The Volkswagen Group’s cost-cutting program is in full swing. In 2025 alone, costs in factories in Germany have been reduced by more than 20 percent. By the end of the decade, as many as 50,000 jobs will be cut at Volkswagen, Audi, Porsche and software subsidiary CARIAD. But that is still not enough.

According to Motor1, at the annual meeting held this week, the Volkswagen Group presented the next phase of its transformation process. The plan consists of eight key initiatives, the first of which is aimed at reducing complexity across the portfolio. Similar to Toyota’s efforts to simplify its wide range, the German conglomerate wants to produce fewer models and variants. The goal is to put more emphasis on high-volume products by focusing on what sells best, rather than maintaining a plethora of average-performing models.

“Reduce complexity. Volkswagen wants to make it easier to navigate the range of models and variants and focus even more on customer expectations in regions. This should generate higher volumes per model.”

The second initiative is a direct consequence of the first. The Volkswagen Group also plans to reduce the number of platforms and electronic architectures. This will reduce costs, reduce complexity and help accelerate vehicle development. The third step is also closely related. The company aims to address overcapacity in factories where the demand for vehicles being produced no longer matches plant production.

If everything goes according to plan, the Volkswagen Group expects to achieve annual net cost savings of over 6 billion euros by 2030. Meanwhile, CEO Oliver Bloom admits that “the situation remains challenging” but remains optimistic about what lies ahead.

Although it is too early to say which models will survive and which face extinction, some victims have already appeared. Audi recently stopped production of the A1 and Q2, while Volkswagen stopped production of the old Touran minivan. Next year, the T-Roc Cabriolet will also disappear from the range.

However, this does not mean that the Volkswagen Group is slowing down its product offensive. The company has already launched more than 30 new models and plans to introduce another 20. We’ve already seen some of them this year, including the ID. Polo, Cupra Raval, Skoda Epiq and Audi A6 Allroad. Later this year, the Audi A2 will officially return as an entry-level electric model. Meanwhile, Škoda will introduce the Peaq electric SUV next week.

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