Volkswagen is set to discontinue 75 models over the next decade, a move that VW brand CEO Thomas Schäfer describes as a “natural transition”. This decision is part of the ‘Future Plan 2030’ strategy, approved in September, which aims to halve the model lineup, reduce variations by 75%, and cut 100,000 jobs to lower costs and focus on North America and China.
At the Paris Motor Show, Schäfer explained that the shift is driven by the 2035 ban on combustion engines in Europe. This makes maintaining both electric and combustion versions of the same model unnecessary, such as the ID. Polo and the Polo, or the ID. Cross and the T-Cross. The T-Roc Cabriolet, with its low sales, is among the models being phased out.
This strategy mirrors recent moves by Skoda and Cupra, which have undergone similar streamlining. However, brands like Audi, Porsche, and Lamborghini face a more complex transition, as 2035 is not a firm deadline for petrol engines in their segments.
To prevent overlap, new models will be developed collaboratively. When multiple brands require a similar-sized vehicle, one will take the lead. The Electric Urban Car Family, including the Cupra Raval, VW ID. Polo, and Skoda Epiq, shares over 80% of parts while maintaining distinct brand identities. An electric ID. up! is set to launch next year as a VW-exclusive model.
This restructuring, which VW CEO Oliver Blume calls the “biggest transformation programme in our history”, includes job cuts and potential factory closures, despite union resistance. The move responds to the growing presence of Chinese electric vehicles (EVs) in Europe.
Blume noted that VW, Stellantis, and Renault, which build over 60 per cent of Europe’s cars, face “enormous pressure” as Chinese brands arrive in record numbers. He supports “Made in Europe” initiatives to boost local manufacturing and welcomed the EU-China deal that could reduce Chinese plug-in hybrid imports by more than half.
Despite VW’s current dominance, selling roughly a quarter of all new cars in Europe, it is adapting to competitors like BYD and Leapmotor gaining traction. The company is taking decisive steps to work through the evolving market.
