Volkswagen Is Cutting 75 Models by 2035

Under the "Future Plan 2030" program, which received the unanimous approval of the Supervisory Board, Volkswagen Group is halving its global portfolio of roughly 150 models by 2035; in other words, around 75 models will be cut from the portfolio. Alongside the reduction in model count, the goal is to cut the number of variants by up to 75%. This is, by the company's own description, the most comprehensive transformation program in its history - and when combined with the zero-emission rule expected to take effect in Europe in 2035, it looks less like an extravagance and more like an inevitable alignment move.

Future Plan 2030: Why Did the Supervisory Board Approve It?

In early September 2026, Volkswagen Group officially announced that its Supervisory Board had unanimously approved "Future Plan 2030." The company describes it as the most comprehensive transformation program in its history, and the figures justify that description: annual sales of 9 million vehicles and a 9% operating margin (roughly 31 billion € in operating results) are targeted by 2030. A capital expenditure and R&D budget of 135 billion € is being discussed for the 2027-2031 planning period, while the overhead item has been set at 37 billion €.

A thirty-year perspective is useful for scaling the magnitude of the cut. In the past, an automotive group's success was measured by how many models and body types it offered; a separate body for every niche and a separate equipment matrix for every market was considered a sign of strength. Now that abundance is a cost item. The company will also streamline its investment portfolio by roughly one third; non-strategic activities will be divested or repositioned. CEO Oliver Blume's promise of a "three-digit billion euro" investment shows that the savings are not a one-sided downsizing but carry the purpose of restructuring for the electric era.

The 2035 End of the Gasoline Engine: What Makes the Cut Inevitable

Under EU legislation, all new cars and light commercial vehicles sold in Europe from 2035 onward will produce no CO2 emissions. The Volkswagen brand had said back in 2021 that it would not wait for this: it will phase out internal combustion engines in Europe between 2033-2035; in the US, this process will unfold later. In 2023, the company also announced that it was ready for the 2035 fossil fuel ban and could achieve price parity by reducing battery costs by 50%.

In this context, halving the model count is the natural companion of the electric transition. Running a model's internal combustion and electric versions in parallel, with dozens of engine-equipment combinations, is consuming the investment appetite for electrification. When the portfolio narrows, the freed-up resources flow into VW's electric models planned through 2030 - the schedule Schäfer had previously announced included ten new electric models by 2026. It had already been said on the group strategy side that 2026 would be the last year with a major product launch; after that come years of consolidation and streamlining.

One balancing note is necessary, though: the ban itself is no longer that definitive. In December 2025, the European Commission announced that it had diluted plans to end sales of new gasoline and diesel vehicles in 2035; whether the ban can be completely scrapped and whether far stricter exhaust emission standards will take its place is being debated. Since VW has not tied its model cuts to the ban, this uncertainty does not change the essence of the plan; but it shows that Europe's regulatory calendar is no longer as fixed as it once was.

Which Models Will Be Cut?

The company has not disclosed which vehicles are under review. This uncertainty is natural; the moment names are given, marketing and the dealer network freeze up. But the logic chain is readable: low-volume niche products, models that overlap across brands, and the gradual culling of expensive derivatives are expected. The group has ten brands, and cutting half of the ~150-model global portfolio means every brand will lose at least a few models.

Thomas Schäfer's position also matters here. It is reported that Schäfer, who has held the VW brand CEO seat since July 2022, said that model cuts would "always happen." This is an expression of planning, not panic: Schäfer also described 2026 as a "milestone year" for VW and made the assessment that the ID.3 and ID.4 "are not real Volkswagens." The "True Volkswagen" vision is built on carrying top-segment technology down to lower segments, and a model that serves this vision means fewer, better-positioned models.

Cross-Brand Synergy: Fewer Models, More Shared Ground

The real logic of the cuts lies in the synergy to be layered onto the remaining models. According to the official statement, priority models will gain higher volume, lower cost, and stronger economies of scale; platforms, electronic architectures, driver assistance systems, and software will be adapted to the needs of the Western and Eastern hemispheres. In other words, what will be shared is the hardware; what will be differentiated is the market.

This strategy has already borne its first fruits: under "Brand Group Core," the central project of 2026 is the Electric Urban Car Family, comprising four models from the VW, CUPRA and Škoda brands. Increasing the sharing of production platforms is also being evaluated at CFO level to accelerate cost cuts. The consolidation of electric platforms with the SSP platform is an extension of the same line: one architecture, many brands. The concrete benefit has already been measured - non-differentiating components, i.e. those invisible to the customer, delivered 600 million euros in development savings.

100,000 People: Tied to Job Losses

The model cut-off does not live in a vacuum. In June 2026, VW was evaluating its largest restructuring, including the removal of 100,000 workers and the closure of four plants; the four-year plan announced in July had failed to resolve the question marks over job losses and factories. In early September the picture became clear: under Future Plan 2030, approximately 50,000 positions (including management) need to be adjusted across the Group; this, together with previously planned cuts, can bring the total to 100,000. Cutting 15% of the workforce and halving the product line is being described as the industry's largest restructuring.

On the production side, capacity in Europe exceeds demand by more than 500,000 units. Sustainable production allocations to the Emden, Zwickau, Hannover and Neckarsulm plants cannot be guaranteed between 2031 and 2034; a sustainable production structure concept for European plants will be developed by the end of June 2027. The target announced in February 2026 - reducing costs by 20% across all brands by the end of 2028 and saving 1 billion euros - is also part of this picture.

In a crisis, tough battles are fought over good solutions.

Voices from the employee front can be summarized with this line. Works Council Chairwoman Daniela Cavallo described the plan as a "necessity" and demanded that the burden not fall solely on employees; Lower Saxony's Minister-President Olaf Lies called for a competitive framework and trade policy support. In thirty years of professional life I have watched similar scenes a few times; the bill of industrial transformation always first lands on the workforce, while determination is entrusted to management.

Future Plan 2030 in Numbers

Where Does This Shrinkage Take VW?

Fewer models, less factory complexity and more shared platforms - that is the picture VW draws on its 2030 horizon. The risk side is clear: once models are cut there is no way back, and while Europe's 2035 timetable remains uncertain, the company betting its full weight on electrification under a single scenario could spark debate if the Commission softens in December 2025. On the other hand, the Group calculates that the remaining models will grow stronger in terms of volume, cost and scale, and that synergy groups will ease this burden on management. The Electric Urban Car Family and the SSP platform are the first concrete lines of this calculation. The rest will be revealed by the European production structure concept and factory allocations expected to be clarified by the end of 2027.

Sources

• Supervisory Board approves Future Plan 2030 - Volkswagen Group
• Executive Board Presents Future Plan - Volkswagen Group
• EU ban on the sale of new petrol and diesel cars from 2035 - European Parliament
• EU waters down plans to end new petrol and diesel car sales - BBC
• VW to end sales of combustion engines in Europe by 2035 - Reuters
• Volkswagen is ready for Europe's 2035 fossil-fuel car ban - Reuters
• Volkswagen to cut further 50,000 jobs - The Guardian
• VW weighs up to 100,000 job cuts, four plant closures - Reuters
• VW to cut model range 50%, variants by 75% - Automotive News Europe
• VW, Audi, Porsche models at risk as VW Group plans cuts - Automotive News Europe
• Volkswagen is about to axe 75 models - Car Throttle
• Brand Group Core on track despite special items - Volkswagen Newsroom
• VW Group to unify EV platforms with SSP - Motor Authority
• Volkswagen unveils four-year plan - Euronews
• Volkswagen plans to cut costs by 20% by end 2028 - Reuters