Volkswagen plans to cut model lineup and production capacity
Volkswagen restructuring plans cut model range and capacity to sharpen competitiveness See what weak demand, tariffs and labor pressure could mean for VW shares
Volkswagen said it plans to reduce its model range by as much as half over the coming years and lower production capacity to 9 million vehicles a year. The move is part of a broader restructuring as the German automaker tries to become more competitive and resilient.
The announcement followed tense talks with the company’s supervisory board and comes as Volkswagen faces pressure from weak demand, U.S. tariffs, and stronger competition from Chinese carmakers. The company did not confirm reports that it is considering closing four German plants or cutting up to 100,000 jobs.
Labor groups and German lawmakers have opposed the reported restructuring plans. Volkswagen shares fell on Friday and have dropped sharply this year as investors weigh the company’s restructuring efforts and broader challenges in the auto industry.