Volkswagen has announced a major strategic overhaul, stating it will reduce its vehicle model lineup by as much as 50%.
The move is designed to lower production costs and sharpen the company's competitive edge against fast-growing Chinese manufacturers that are capturing market share with sophisticated, affordable electric vehicles.
The decision marks a significant pivot for the Wolfsburg-based group, which has struggled to maintain its traditional volume advantage in key growth markets.
By consolidating its offerings, Volkswagen intends to focus resources on fewer, higher-volume platforms, thereby improving economies of scale and reducing the complexity that has weighed on its margins in recent years.
This announcement builds on earlier reports indicating that Volkswagen is advancing a sweeping restructuring plan.
Previous coverage suggested the automaker was considering eliminating up to 100,000 jobs globally and discontinuing production at four of its German plants.