Report: Volkswagen to downsize their lineup to curb costs

Volkswagen’s still feeling the brunt of Dieselgate as the corporation seeks to minimize their expenses, not only to save themselves from going bankrupt in what could be one of the biggest scandals in all of automotive history, if not the biggest, but to also reduce costs in general.

That said, word from AutomotiveNews Europe is Volkswagen AG wants to downsize their lineup by reducing the amount of variants and trim options on their cars to simplify and streamline their assembly processes a little better.

Volkswagen’s top labor representative, Bernd Osterloh, spoke to media at a press conference to address these plans, citing complexity and cost as the reason to simplify their lineup. This in turn could allow VAG to save as much as 1.9 billion euros in terms of spending.

Osterloh also stated that many members within Volkswagen’s council disapproved of the huge range of offerings from the company, noting such variations made things too difficult to handle in terms of logistics, especially on such a large scale at which they’re currently offering. He also cited this as the reason why future customers have reluctant to buy a new Volkswagen. This also isn’t including the bad press Volkswagen’s receiving from Dieselgate.

Volkswagen’s overall plan is to save as much as five billion euros per year while reducing annual investments by one billion euros.

– By: Chris Chin

Source: AutomotiveNews Europe


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