Volkswagen intends to reduce its vehicle line-up by up to half as part of a broader cost-cutting push, though it offered no specifics on potential job cuts or plant shutdowns.
The announcement comes after media reports indicated the German carmaker was considering laying off 100,000 employees by 2030 and closing four plants across Europe.
Volkswagen's statement made no reference to these reported workforce measures.
The group outlined 12 initiatives and a target framework for 2030 to its supervisory board, forming part of a wider strategic overhaul intended to boost competitiveness.
The executive board has already begun implementing several measures under the plan.
These include reducing complexity across the product portfolio, tailoring products, technology and development work more closely to individual regional markets, matching production output to demand, and streamlining corporate structures and shareholdings.
Under the plan, the vehicle range will be trimmed incrementally by as much as 50%, with focus shifting to the best-performing market segments, while available trim and equipment configurations will be reduced by up to 75%.
Volkswagen is also merging its technology divisions – spanning platforms, electronic architecture and software – to serve both western and eastern markets, aiming to unlock synergies across the group and eliminate overlapping technical systems.
On production, the company's cross-brand annual capacity target is roughly nine million vehicles, down from close to 12 million prior to the COVID-19 pandemic.
A cut of two million units has already been delivered, with additional reductions planned for its Chinese and European operations.
Volkswagen said the past three years have involved structural changes under its “Top-10” programmes, alongside a broad technology overhaul.
Core objectives across products, technology and regional operations were achieved – in some cases ahead of schedule – notwithstanding geopolitical and financial headwinds that were largely offset, it added.
Volkswagen's Top-10 programme is an annual group-level strategy initiative that translates long-term goals into day-to-day operations.
On its equity holdings, the group said these are being realigned according to strategic value, returns and capital requirements, pointing to the deal struck in late June to sell a majority stake in Everllence, which is expected to bring in cash proceeds of around €7.4bn ($8.46bn).
Volkswagen said the initiatives are intended to bolster its resilience as the wider automotive industry undergoes a period of significant global change.
Volkswagen Group CEO Oliver Blume said: “With our future plan, we are moving into the next phase of transformation by our own means. We are making the Volkswagen Group faster, more resilient and more competitive: through less complexity, focused technologies, an even stronger alignment of products, development and production with regional markets, the reduction of overcapacities, a streamlined equity portfolio and significantly leaner structures.”
