VW is looking at axing about 30% of its lineup, closing four plants, and cutting up to 100,000 positions globally as part of a drastic restructuring.
The Volkswagen Group is staring down a serious crisis and getting ready to make some deeply unpopular moves. According to a report from Manager Magazin citing internal sources, the automaker intends to slash up to 100,000 jobs worldwide over the next few years. On top of that, VW is considering shutting down four of its production sites: the plants in Hannover, Zwickau, and Emden, plus the Audi facility in Neckarsulm.
A recent internal survey of top-level managers at Volkswagen Group by the German outlet revealed that roughly 75% of the leadership believes the company is on the edge of a crisis. Not long after, VW’s CEO more or less confirmed the grim outlook while laying out the brand’s strategy through 2030. Now, more and more signs are piling up that the situation really is as bad as it sounds.
The German brand wants to overhaul its product portfolio, cutting around 30% of its models. The approach looks a lot like what Porsche has done. For now, VW plans to target low-selling models first, but interestingly, internal combustion cars are the ones getting the axe. That doesn’t mean the company plans to ditch gas-powered cars overnight, though. Each model would be phased out right before its next scheduled generation change.
At the same time, VW is still planning to launch 30 new vehicles by 2027. Some of them are already on the market today, meaning the list includes models that are due for a refresh next year. And by the end of the decade, Volkswagen intends to bring out another 20 cars.
As part of the recently announced strategy, the brand will simplify vehicle designs to cut costs. That means a bunch of current variants won’t survive. The T-Roc convertible is one high-profile victim that’s on its way out soon. The Touareg and Touran have already been pulled from sale. Toyota and Hyundai are following a similar playbook, incidentally.
Volkswagen hasn’t yet published the full list of models that will disappear. Several sources feel certain that the cuts won’t stop with gas-powered cars — the ID.7 Tourer is reportedly on the block too, simply because it’s not selling.
What looks even more likely is that family-oriented models will leave the lineup in the near term. The Golf Variant wagon could get the chop, along with the T-Cross and Taigo crossovers. The trouble with those isn’t just soft sales; VW is also readying electric replacements for them. The Passat wagon might vanish as well, though it will live on in China.
For now, every decision about trimming the lineup is being looked at through a European lens. Volkswagen is pursuing a completely different strategy in China, where it’s leaning on local tech and platforms through deep partnerships with companies like Xpeng and SAIC.