News update on July 10: Per foreign automotive media Motor1, the Volkswagen Group unveiled a sweeping downsizing plan via official press release on July 9 (Beijing time), which takes effect immediately.
Under the new scheme, each brand within the group will slash up to 50% of its model lineup. The entire existing product portfolio may be halved, retaining only vehicles targeting the most attractive market segments.
For surviving models, the range of optional equipment will also be drastically trimmed, with available configurations reduced by as much as 75%. The Group stated it will prioritize products and technologies that deliver maximum added value to customers and generate the highest returns for the company, shifting resources to high-volume models with healthier profit margins.
According to IT Home, multiple models have already been axed or scheduled for discontinuation. The Touareg SUV and Touran MPV have exited the market, while the T‑Roc Cabriolet is set to cease production in 2027. At Audi, entry-level compact cars A1 and compact crossover Q2 were recently phased out. Earlier, the TT sports car, R8 supercar and Q8 e-tron had all gone out of production one after another. For Porsche, the 718 Boxster and 718 Cayman were discontinued last October, and the first-generation Macan will roll off production lines for good at the end of this month.
Volkswagen Group has also cut its annual production capacity to 9 million units, far below pre-pandemic levels. The group once invested heavily to lift total capacity to roughly 12 million vehicles, yet 2 million units of capacity have been eliminated following the COVID‑19 outbreak.
Nevertheless, the Group has declined to comment on reports that four German factories could face shutdowns. Germany's business magazine Manager Magazin reported at the end of June that Volkswagen plans to close plants in Zwickau, Emden, Hanover and Neckarsulm, and is considering expanding the planned layoffs from the previously announced 50,000 staff to 100,000. The official side has not issued any response regarding potential factory closures or further job cuts on top of the 50,000 target.