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Volkswagen’s gamma cut in half: cuts also among electric vehicles?

Volkswagen’s gamma cut in half: cuts also among electric vehicles?

Volkswagen’s model lineup cut in half: the German group has approved a drastic reduction in the models offered. What will happen with electric vehicles?

Volkswagen’s model lineup cut in half and 100,000 jobs eliminated (union approval)

Volkswagen’s model lineup cut in half

Medicine is a bitter pill for the German giant: four factories in Germany will be converted for other uses (weapon factories?) or closed. These are Emden, Zwickau, Hannover, and Neckarsulm. An additional 50,000 workers will lose their jobs, on top of the 50,000 already agreed upon. Many assets deemed no longer strategic (including Lamborghini and Ducati?) will also be sold. What’s astonishing for us Italians is that such a drastic decision was made with the participation of the union. The union leader, Daniela Cavallo, even declared that the cuts are “a necessity to successfully lead our Group in the next decade.” Not only workers and employees but also many managers will lose their jobs; this is a sacrifice highly welcomed by the union.

Get rid of all models considered “non priority”

Volkswagen's model lineup cut in half

The essence of this strategy lies in the desire to “focus on the most attractive vehicles.” An end to the endless ranges we were used to: “By 2035, Volkswagen Group will streamline its model portfolio by about 50% and reduce the complexity of its offerings by roughly 75%,” reads a statement. “Priority models will aim for excellence in design and technology, benefiting from focus on a smaller number of variants. Higher volumes per model, lower costs, and greater scale economies.” It raises the question of which products will be considered “non priority” in the electric vehicle segment—a field where the German giant has struggled to establish itself, unless it manages to seize European leadership by 2026, thanks also to Tesla’s gradual slowdown.

Volkswagen’s Model Range Cut in Half: Is the ID.3 Targeted?

Volkswagen model lineup cut in half

Is there a Volkswagen electric vehicle that has dramatically fallen short of expectations? At the top of the list is undoubtedly the ID.3. It was supposed to take over from the Golf in the zero-emission segment, but it ended up with disappointing sales figures. Even in July in Europe, it only managed to rank 9th, with just 5,844 units registered. This is far behind other models in the group, such as the Skoda Enyaq and Elroq, as well as the VW ID.4 itself. However, the most likely scenario is that this model won’t be discontinued but will instead be completely revised. Starting with the name, which would become ID.Golf, following a trend already in place of using historic brand names combined with the electric suffix ID.