"Volkswagen" to reduce the number of models to cut costs
Germany's Volkswagen Group has announced the largest structural change program in its history. This was reported by Zamin.uz.
In order to significantly reduce costs and increase operational efficiency, the company plans to reduce the number of car models produced by fifty percent. Additionally, the number of spare parts and various configuration options will be reduced by seventy-five percent.
This strategic step is considered crucial for maintaining the brand's competitiveness in the global market. According to international news agencies, these proposals were developed as part of the Future Plan presented to the Volkswagen supervisory board.
The company's management aims to focus primary attention on the most high-demand market segments and reduce complexities in the production process. The freed-up resources will be directed toward the development of modern technologies.
These measures are being implemented against a backdrop of declining net profits and restrictions in international trade. Currently, Volkswagen is under pressure from intensifying competition from Chinese automakers and strict environmental requirements.
Therefore, the company intends to lower its annual production capacity from the pre-pandemic twelve million units to nine million units. This will allow for adaptation to the real state of the market and the avoidance of excessive expenditures.
The company's management intends to become the world's most attractive automaker by 2030. Another important direction of the reforms involves unifying car platforms and software systems across different regions.
This will reduce the technical gap between models produced for Western and Eastern markets. However, such large-scale changes are facing resistance from trade unions in Germany.
Initial plans included the closure of four plants in Germany and the reduction of many jobs. However, because worker representatives opposed these proposals, a final decision on closing the plants has not yet been announced.
The company's financial analysts note that previous cost-saving programs have become insufficient in the current geopolitical and economic situation. Consequently, Volkswagen's management is forced to take more drastic measures.
The new strategy envisions not only economic savings but also a complete renewal of the brand by making extensive use of digitalization and artificial intelligence capabilities. These changes are expected to ensure the company's long-term stability.
