- The VW Group will favor high-volume models.
- It wants to make it easier for customers to choose from its range of models and variants.
- Production capacity will also reduce.
Volkswagen Group’s cost-cutting program is in full swing. In 2025 alone, factory costs at its German plants were cut by more than 20 percent. By the end of the decade, more than 50,000 jobs will be eliminated at Volkswagen, Audi, Porsche and software subsidiary CARIAD, with agreements already signed for more than 28,000 employees. But that’s still not enough to transform the automotive giant into a smaller, more efficient business.
At the annual general meeting held this week, the VW Group outlined the next phase of its transformation process. The plan includes eight key initiatives, the first of which focuses on reducing complexity across the portfolio. Like Toyota’s attempt to streamline its vast lineup, the German group also wants to make fewer models and variants. The goal is to place greater emphasis on high-volume products by focusing on the best-selling products rather than maintaining a myriad of models with moderate performance.
‘Reduce complexity. Volkswagen wants to simplify the range of models and variants and focus even more on customer expectations in the regions. This should lead to higher production volumes per model.
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Less platforms, less production capacity
The second initiative is a direct result of the first. The VW Group also plans to reduce the number of platforms and electronic architectures. Doing so will reduce costs, reduce complexity and help accelerate vehicle development. The third stage is also closely related. The company aims to address overcapacity at factories where demand for vehicles produced no longer matches plant production.
The full list is available on Company WebsiteAnd if all goes according to plan, the VW Group expects to achieve annual net cost savings of more than €6 billion by 2030. Meanwhile, CEO Oliver Bloom acknowledges that “the situation remains challenging” but remains optimistic about what happens next.
Out with the old, in with the new
Although it is still too early to say which models will survive and which face extinction, some casualties have already emerged. Audi recently discontinued the A1 and Q2, while Volkswagen has discontinued the older Touran minivan. In 2027, the T-Roc Cabriolet will also disappear from the lineup.
However, that doesn’t mean that VW Group is slowing down its product aggression. The company launched more than 30 new models last year and plans to introduce another 20 models in 2026. We’ve seen some of them already this year, including ID. Polo, Cupra Raval, Skoda Epic, and Audi A6 Allroad. Later this year, the Audi A2 will officially return as an entry-level electric model. Meanwhile, Skoda is just days away from unveiling its seven-seat Peak electric SUV, so there’s still a lot happening on the product-planning front.
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Motor1’s Opinion: The CEO of the VW Group doesn’t mince words: “The next few years are crucial.” Whether this sweeping change will be profitable remains to be seen, but aggressive restructuring measures should significantly reduce costs across the company and improve profits.
As always, the most important element of any business plan is the product, and all brands have plenty in the pipeline. Not everything available today will survive, as the VW Group takes a close look at what works to determine what stays and what should go.
