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After a board meeting on Thursday, Volkswagen said its
“fundamental realignment” over the last three years had reached
its next phase, announcing plans to streamline the model lineup
by up to half, without providing specifics.
CEO Oliver Blume laid out plans to make VW faster and more
competitive through less complexity, focused technologies,
better alignment across regional markets and reduction of
overcapacities, among other things, citing an “increasingly
demanding environment.”
Among its main brands, the core Volkswagen unit saw deliveries
of slightly over 1 million vehicles in the second quarter, a
drop of 14% from a year earlier. Deliveries at Audi declined 8%
and those at Porsche fell 18%.
Lamborghini, Skoda and the trucks unit reported upticks, and
sales grew in the Americas and Europe.
Volkswagen cited dramatic change over the last year, including
geopolitical tensions, rising costs mainly through tariffs, and
increasing regulatory requirements alongside growing
competition.
As recently as December, Volkswagen was betting big on China,
where electric cars have been taking a greater market share and
competition is stiff.
Research firm BernsteinSG, in a note after Thursday's
announcement, expressed skepticism. “VW stated that it is
extending its technology leadership, a claim that will likely
raise eyebrows given the pace of innovation among its Chinese
competitors,” it said.
Also Thursday, hundreds of employees led a protest outside the
Volkswagen plant in Zwickau to demand protections for jobs and
voice opposition to plans to close the site. The factory has
fully switched to making electric cars.
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