Volkswagen plans 1 MN vehicle cut across China, Europe

Volkswagen Group plans to cut global production capacity by 1 million vehicles across China and Europe and reduce its vehicle lineup by as much as 50%, reports Caixin. The move is part of a broad restructuring aimed at improving efficiency and profitability.

Management presented the plan Thursday at a closed-door supervisory board meeting in Germany. The strategy is intended to refocus Volkswagen on its core business and strengthen its resilience against external shocks and risks.

The overhaul highlights the mounting pressure on the German automaker as it contends with geopolitical tensions, tighter regulations and intensifying competition from Chinese carmakers that are eroding its market share in China and Europe.