Volkswagen plans to reduce its group-wide model portfolio by approximately 50% by 2035.
About 50,000 additional global positions are targeted as Volkswagen restructures engineering and manufacturing operations.
Seat remains under review while Volkswagen increases the strategic importance of its Cupra brand.
Volkswagen Group has secured supervisory board approval for a major restructuring program that targets its vehicle portfolio, workforce, engineering operations, and manufacturing footprint to lower costs and reduce organizational complexity.
Under the Future Plan 2030, Volkswagen intends to reduce the number of models sold across its 10 brands by approximately 50% by 2035. The strategy would direct development spending toward fewer vehicles and increase commonality in platforms, software, electronics and components.
2027 Volkswagen ID.3 Neo | Photo: VolkswagenThe German automaker also plans to eliminate around 50,000 additional positions worldwide, including management roles. Volkswagen currently has approximately 663,000 employees and operates 111 production facilities globally.
Capital allocation will also tighten. Volkswagen is targeting €135 billion (CDN$217 billion) in research, development and related investment between 2027 and 2031, approximately €50 billion (CDN$81 billion) below its previous five-year planning level. The company nevertheless expects to spend a three-figure-billion-euro amount on products, technologies and future growth areas.
Engineering changes are designed to remove duplicated development work. Individual brands will take responsibility for systems that can subsequently be deployed elsewhere in the group. Volkswagen also plans to increase the use of artificial intelligence and engineering resources in lower-cost locations.
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For EVs, the company wants to concentrate on two primary electrical and electronic architectures: its Software Defined Vehicle system and China Electronic Architecture. A separate architecture is planned for combustion-powered vehicles serving Europe and North America.
The SSP vehicle platform program is being reduced from eight planned variants to four. Software subsidiary Cariad will also undergo restructuring, with a detailed plan expected by the end of 2026.
Manufacturing capacity represents another major component of the program. Volkswagen estimates its European operations have annual excess capacity exceeding 500,000 vehicles. Future product assignments remain uncertain at Emden and Zwickau from 2031, Hanover from 2032 and Audi’s Neckarsulm facility from 2034.
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These plants have not been formally designated for closure. Volkswagen will establish a revised European manufacturing structure by the end of June 2027, while it examines alternative uses for the facilities. Future vehicle allocation is expected to depend heavily on individual factories meeting international cost benchmarks.
Seat could also be affected by the portfolio review. Internal documents reported by Autocar indicate the Spanish marque could be phased out by the end of 2029,
Volkswagen is also changing the role of its Chinese operations. It aims to export between 250,000 and 300,000 China-built vehicles annually by 2030, for Southeast Asia, Oceania, the Middle East, Africa and South America. The company expects those exports to generate more than €1.5 billion (CDN$2.4 billion) in additional annual revenue by 2030.
Source: Autocar
