The VW Group is streamlining its portfolio by up to 50 percent.
The number of available optional equipment is decreasing by up to 75 percent.
Annual production capacity will be reduced to nine million units.
We knew things were bad at the Volkswagen Group for a while, but the severity of the situation is downright shocking. In a worrying press release issued just minutes ago, the German automotive conglomerate revealed a sweeping plan to drastically downsize, not in a few years, but “with immediate effect.” It intends to reduce its model lineup across its brands by up to 50 percent. Yes, the portfolio could be cut in half, leaving only the models competing in the “most attractive market segments.”
That’s not all. The number of available options for the surviving models will be cut by up to 75 percent. The VW Group has done an excellent job of allowing customers to configure their cars down to the tiniest details, not just on its luxury models but on its mainstream cars as well. Sadly, those days appear to be ending as the cost-cutting agenda calls for a dramatically simplified list of options.
