Volkswagen Group will cut production by one million vehicles and halve its model lineup to enhance efficiency amid rising competition and regulations.
Volkswagen Group will reduce global production capacity by one million vehicles across China and Europe and shrink its model lineup by up to half, reports Caixin.
The German automaker presented the restructuring plan at a closed-door supervisory board meeting in Germany. Management stated that the overhaul is aimed at improving efficiency and profitability while refocusing on core business operations.
The cuts underline the mounting pressure on Volkswagen as it faces geopolitical tensions, stricter regulations, and intensifying competition from Chinese carmakers. These rivals have eroded Volkswagen's market share in both China and Europe.
Executives indicated that the strategy is designed to strengthen resilience against external shocks and risks, positioning the company to adapt more quickly to changing market conditions.
