Volkswagen will slash its annual global production capacity by an additional 1 million units as its sales fail to rebound to pre-COVID-19 levels. The production cuts will come in Europe, and mostly impact the VW and Audi brands.

 

As of last year, the German conglomerate had the capacity to build roughly 12 million vehicles, but it sold only 8.68 million. According to chief executive Oliver Blume, “overcapacities are not sustainable for our company in the long term,” adding that “the volume planning of the past is unrealistic” in the current era.