MOSCOW: German automaker Volkswagen has announced plans to reduce its model range by up to 50 per cent and equipment options by 75 per cent, according to Sputnik/RIA Novosti.
Earlier this week, Bloomberg reported that on Thursday, Volkswagen planned to raise the possibility of doubling job cuts in Germany and closing some plants to reduce costs and strengthen the company’s global competitiveness.
“The model lineup will be gradually streamlined by up to 50 per cent and concentrated on the most attractive market segments. Offering complexity — for example, the number of available equipment options — will be reduced by up to 75 per cent,” Volkswagen said in a statement on Thursday.
The move will allow the company to reallocate resources and focus them on products that “deliver the greatest added value for customers and the highest value contribution to the Group”, the statement added.
In June, Manager Magazin reported, citing sources, that Volkswagen chief executive officer Oliver Blume was planning to cut up to 100,000 jobs worldwide over the next few years and stop production at four of the company’s plants in Germany. – BERNAMA-SPUTNIK/RIA NOVOSTI
