After Toyota, Volkswagen Also Thinks It Has Too Many Models

The Volkswagen Group is moving to streamline its sprawling model lineup in a bid to simplify customer choices. Its cost-reduction program accelerated in 2025, with German plant costs shaved by more than 20 percent. By the end of the decade, as many as 50,000 jobs could vanish across VW, Audi, Porsche and the CARIAD software unit, with agreements for over 28,000 already signed. The eight initiatives outlined at the AGM focus first on reducing portfolio complexity to deliver higher volumes per model. CEO Oliver Blume described the aim as making navigation of the range easier and aligning products with regional demand for stronger market performance. The second initiative will cut the number of platforms and electronic architectures, cutting costs and reducing development time. The plan also targets overcapacity at factories where demand no longer matches output. Management expects net annual savings of more than €6 billion by 2030 if plans unfold as hoped. Casualties have already appeared, with Audi pulling the plug on the A1 and Q2, and Volkswagen discontinuing the Touran; the T-Roc Cabriolet will exit in 2027. Yet the group continues a vigorous product offensive, launching more than 30 new models last year and planning another 20 in 2026, including the ID Polo, Cupra Raval, Skoda Epiq and Audi A6 Allroad; the A2 is set to return as an entry-level EV, and Skoda is poised to unveil its seven-seat Peaq electric SUV.