Volkswagen to cut model lineup, capacity in bid to tackle crisis

Volkswagen plans to drastically cut its model lineup by up to half, reduce production capacity to 9 million vehicles, and potentially cut up to 100,000 jobs.

Volkswagen announced plans on Thursday to drastically pare back its model lineup and reduce production capacity further, following a meeting of ‌the supervisory board to discuss a far-reaching overhaul of the automaker. Europe's top carmaker said ‌the model lineup would be gradually cut by up to half and concentrated on the most attractive market segments, adding that production capacity would be reduced further to 9 million vehicles per year.

Sources have ⁠said CEO ​Oliver Blume plans ⁠to cut up to 100,000 jobs and close four German factories, which drew massive worker protests across Volkswagen's ⁠German sites on Thursday. Grappling with high costs and excess capacity at home, rising Chinese competition ​and U.S. import tariffs, Volkswagen is under unprecedented pressure to restructure the business ⁠model that underpinned its success for decades. The prospect of plant closures and deep job cuts at one of Germany's ⁠most ​storied companies, founded 89 years ago, also underscores the challenges for Europe's largest economy as it struggles with weak growth and high labour and energy costs. At ⁠a supervisory board meeting at Volkswagen's headquarters in Wolfsburg on Thursday, Blume faced the committee's ⁠powerful labour representatives, who ⁠oppose deeper cuts across the group, which includes the Audi and Porsche brands.