Volkswagen reduces model range as part of electric drive
Volkswagen will reduce its model range to focus on more profitable vehicles as part of its electric drive, finance chief Arno Antlitz told the Financial Times today.
The group – who owns brands such as Seat, Skoda Audi and Porsche – will cut down on models, going from the current 100 diesel and fuel vehicles to 40 by 2030.
The move – which will see Volkswagen focus on more profitable brands such as Porsche to obtain higher returns – comes as the automotive maker said its 2022 output could be in danger due to ongoing shortages, both of semiconductors and wire harnesses.
“The war in Ukraine has put our existing outlook into question,” said chief executive Herbert Diess said in mid-March, adding that commodity markets are expected to remain volatile until 2026 as a result of the Russian invasion of Ukraine, City PM reported.
According to Mark Raban, chief executive of car dealer Lookers, Volkswagen’s decision could be driven by the car maker’s needs to cut costs to gear up electric car production and compete with giants such as Tesla.
“If you look at some of the pure [electric vehicle] brands that have come in, Polestar has only got three models, for example, three very successful models. So I think we will naturally see the number of models reducing to drive efficiency, and I think customers will be fine with that,” Raban told the Telegraph.