Volkswagen to halve model lineup, cut production to 9m

The Volkswagen Group announced a sweeping restructuring plan on Thursday, July 9, 2026, that will see its global model lineup cut by up to half as the automaker confronts plummeting sales, particularly in China, and intensifying global competition. The plan, presented to the company's supervisory board, also aims to reduce annual production capacity to 9 million vehicles and streamline vehicle equipment options by as much as 75 percent.

The announcement followed the release of weak second-quarter sales figures, which showed group-wide deliveries fell 8.6 percent compared to the same period last year. The decline was driven primarily by a dramatic 36.6 percent drop in sales in China, Volkswagen's largest single market. This performance offset gains in other regions, including North America, where sales rose 7.7 percent, and Europe, where Central and Eastern European markets showed strong growth. For the first half of 2026, global sales are down 6.3 percent.

In a statement, Volkswagen CEO Oliver Blume cited geopolitical tensions, high costs exacerbated by tariffs, increasing regulation, and intense global competition as pressures necessitating immediate action. The company said it...