The Volkswagen Group’s cost-cutting program is in full swing. In 2025 alone, factory costs at its German plants were slashed by more than 20 percent. By the end of the decade, as many as 50,000 jobs will be eliminated across Volkswagen, Audi, Porsche, and software subsidiary CARIAD, with agreements for more than 28,000 employees already signed. But that’s still not enough to transform the automotive giant into a leaner, more efficient business.
At the annual general meeting held this week, the VW Group outlined the next stage of its transformation process. The plan consists of eight key initiatives, with the very first focused on reducing complexity across the portfolio. Much like Toyota’s effort to streamline its sprawling lineup, the German conglomerate wants to build fewer models and variants. The goal is to place greater emphasis on high-volume products by focusing on what sells best rather than maintaining a myriad of models with middling performance.
