The Volkswagen group's strategy is to reduce its range to increase its profitability
- Volkswagen wants to eliminate more than half of its thermal models by 2030, not only to become a 100% electric manufacturer in 2035 but also to favor profitability over volume. Volkswagen wants to move upmarket and focus on a smaller and more expensive model range. It is obvious that with a reduced range and sharing as many components as possible, a manufacturer theoretically becomes more profitable because it focuses on a limited number of models and platforms. This reduction will affect the Volkswagen brand, but also Audi, Skoda, Seat and Porsche.
- Today, Volkswagen's European range has around fifteen different models, the Chinese range around thirty models, the North American range around ten models and the South American range around ten models. Overall, there are around forty different models and the manufacturer's objective is to eliminate twenty-five of them within eight years.
- This reduced range should be revived by the 100% electric models (ID range) which are currently four in number (ID3, ID4, ID5, ID Buzz) but which should increase to ten by 2030. These vehicles are more expensive than thermal vehicles, which is in line with the strategy of favoring the most expensive vehicles and on which the margin is higher. Regarding internal combustion vehicles, the least profitable and least sold models will be phased out first. The question is whether this pruning will not benefit other manufacturers or whether it will not cause a decline in car markets insofar as other manufacturers have a comparable strategy.
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