Volkswagen AG is overhauling its strategy to combat rising costs and intense competition in China. The plan presented to the supervisory board includes cutting the vehicle model lineup by 50%.
The automaker will also reduce manufacturing capacity to align with current market realities. These measures aim to reduce expenses and complexity while prioritizing profitable segments.
Global deliveries fell 8.6% during the second quarter. This decline was driven by a 37% sales drop in the Chinese market. Conversely, North America and Western Europe recorded modest sales increases.
The restructuring has created tension with labor representatives. A prior agreement already targets more than 35,000 job reductions by 2030.