Volkswagen disclosed a sweeping efficiency overhaul that will halve its model lineup and trim annual production capacity to nine million vehicles, down from the pre‑COVID‑19 target of 12 million. The company said a reduction of two million units has already been implemented.
The plan, detailed in a press release signed by the executive board, cites a changed global market environment, tariff pressures and intensifying competition as drivers. VW will also merge its software, platform and electronic‑architecture divisions, aiming to eliminate parallel tech structures and cut offering complexity by up to 75 percent, meaning fewer equipment options for buyers. The automaker frames the move as part of its goal to become “the most attractive automotive company in the world” by 2030.
The announcement arrives amid reports that the German giant may cut up to 100,000 jobs – roughly 15 percent of its global workforce – and shut several factories, the biggest restructuring in its 89‑year history. Earlier this week, IG Metall staged protests at 18 VW sites, including outside the Wolfsburg headquarters, signaling worker resistance to the scale of the changes.
