VOLKSWAGEN TO CUT MODEL LINEUP BY UP TO HALF

Volkswagen announced plans to reduce its model lineup by up to 50 per cent and cut production capacity to nine million vehicles annually, down from a pre-pandemic target of 12 million. The announcement followed a supervisory board meeting on Thursday at which the company's management presented the restructuring plan. Chief Executive Oliver Blume stated that the changes would make the group "faster, more resilient and more competitive". The company did not announce specific job cuts at the meeting, despite earlier reports suggesting potential closures of four German factories and redundancies affecting up to 100,000 workers.

The restructuring plan represents a significant shift in strategy as Volkswagen concentrates on what it describes as the most attractive market segments. Production capacity will be gradually reduced over coming years as the model lineup is streamlined. The proposal has faced opposition from German lawmakers and labour unions, who view potential job losses with concern. Reports prior to the announcement suggested the plan could constitute the most substantial overhaul in the company's nearly 90-year history.

Volkswagen stated the transformation was being undertaken "by our own means" without external intervention. The supervisory board meeting concluded without agreement on the deeper workforce reductions that some reports had indicated were under consideration. The company has previously launched job cut initiatives and a major product offensive in response to competitive pressures in the automotive sector. Further details on implementation timelines and specific facilities affected remain to be confirmed.