The Volkswagen Group aims to improve the quality and profitability of its cars by cutting up to half the models it sells, as part of a strategy to dramatically reduce costs and complexity.

 

The firm posted a dramatic drop in profits in the first half of 2026, returning a margin of just 3.8%, which it says highlights the urgent need for a radical restructuring of the entire company.

 

It plans to significantly cut its overheads by trimming up to 100,000 jobs globally, and reducing the amount of crossover and complexity in its vehicle line-up is another fundamental strand of its strategy to grow margins.