Foreign media: Volkswagen announced it will cut its model lineup by nearly half to reduce costs and respond to competition from Chinese automakers, but did not specify exact plans for layoffs or factory closures.
The company's annual production capacity target has been reduced from 12 million units before the pandemic to 9 million units. CEO Oliver Blume stated that "excess capacity must be eliminated." Volkswagen's sales in China plummeted by 20% in the first quarter, and years of declining performance have made it particularly vulnerable; meanwhile, profits dropped 28% to 1.6 billion euros during the same period. Porsche has been severely impacted by Trump’s 25% auto tariffs.
Chinese electric vehicle manufacturers, with their low-price, high-specification strategy, have already surpassed Japanese brands in market share across Europe. The German government is pushing for subsidies and regulatory relaxation to rescue the industry, but concerns over factory closures have triggered local economic panic and political unrest.
Original source: toutiao.com/article/1870303837605888/
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