Volkswagen discontinues lower-volume VW Arteon, focusing on high-volume models.
The arrival of the ID.7, with 99% fewer configurations, emphasizes streamlined production.
VW’s strategic shift signals a decisive move towards electrification.
In a significant strategic shift, Volkswagen has announced the discontinuation of its lower-volume model, the VW Arteon, as it looks to optimize its product lineup and focus more on volume models. The move forms part of the automaker’s broader global performance program, “ACCELERATE FORWARD | Road to 6.5,” which aims to improve profitability and efficiency.
The Arteon, a premium model known for its sleek design and robust features, did not reach the expected sales volume, leading to Volkswagen’s decision to streamline its lineup. While the Arteon had its unique appeal, the company’s strategy now focuses more on vehicles with a higher sales volume. The change in strategy aims to help the company achieve a sustainable 6.5 percent return on sales by 2026.
2024 Volkswagen ID.7 | Photo: Volkswagen
Meanwhile, Volkswagen is set to redefine its range with the introduction of the ID.7, an example of the brand’s new direction. The company aims to simplify the customer experience with this model, offering a staggering 99 percent fewer configuration options compared to its predecessor, the Golf 7. This strategic decision aims to reduce complexity and enhance the overall efficiency of their production process.
The arrival of the ID.7 further signifies Volkswagen’s commitment to a future with electric mobility, as part of its broader plan to reduce carbon emissions and contribute to a more sustainable automotive industry. With streamlined models like the ID.7, Volkswagen expects to respond more flexibly to market fluctuations, maximizing plant capacity utilization, and subsequently, profitability.
To sum up, Volkswagen’s decision to discontinue the VW Arteon and introduce the ID.7 marks a crucial turning point in the brand’s strategy. The aim is clear: to streamline offerings, increase efficiency, focus on volume models, and move decisively towards a future underpinned by electric mobility.
