Volkswagen has announced its decision to discontinue niche models, starting with the Arteon hatch and wagon, as part of a strategy to enhance operational efficiency and increase profits. The automaker aims to achieve a 10 billion euros ($10.8 billion) improvement in earnings and a 6.5% return on sales by 2026, all without affecting employment or wages. Thomas Schäfer, the VW brand boss, unveiled this new approach during a meeting with unions at the company’s headquarters in Wolfsburg, Germany.
Schäfer emphasized that the focus will shift to a select few authentic Volkswagen core models to simplify operations and drive higher profitability. Although he did not provide a specific timeline for the discontinuation of the Arteon, it is expected to coincide with the production launch of the 2025 ID.7 electric hatch (including a wagon variant) at the Arteon’s manufacturing plant in Emden, Germany, toward the end of this year.
While Schäfer did not mention any other potential models that may be discontinued, a VW spokesman confirmed that the Arteon will continue production until the 2024 model year, without indicating whether there will be subsequent model years.
In addition to dropping certain models, Volkswagen will also reduce the number of options and variants within its remaining model lines. This streamlining process will commence with the ID.7, which VW plans to offer with significantly fewer configuration choices compared to the current Golf lineup.
Furthermore, VW intends to consolidate platforms and production in collaboration with other volume brands under the VW Group. For instance, the development and production of VW’s upcoming subcompact EV, previewed by the ID.2all concept car earlier this year, will be led by fellow VW Group brand SEAT. Similarly, Skoda has taken the lead in developing the next Passat for VW, as well as the related Skoda Superb model.
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Frequently Asked Questions (FAQs) about VW, niche models, Arteon, profits, operational efficiency, core models, complexity
What models does Volkswagen plan to discontinue?
Volkswagen plans to discontinue niche models, starting with the Arteon hatch and wagon.
What is the purpose of discontinuing these models?
The discontinuation aims to improve the efficiency of Volkswagen’s operations and boost profits.
What is Volkswagen’s new strategy?
Volkswagen’s new strategy aims to improve earnings by 10 billion euros and achieve a 6.5% return on sales by 2026, without cutting jobs or wages.
Will there be job cuts as a result of this strategy?
No, Volkswagen plans to achieve its goals without cutting jobs or wages.
When will the Arteon be discontinued?
A specific timeline for the discontinuation of the Arteon has not been provided, but it is expected to align with the production launch of the 2025 ID.7 electric hatch at the Arteon’s manufacturing plant in Germany.
Will there be subsequent model years for the Arteon?
The Arteon will continue production until the 2024 model year, but it is unclear if there will be subsequent model years.
How will Volkswagen reduce complexity in its model lines?
Volkswagen plans to reduce the number of options and variants within its remaining model lines, starting with the ID.7 electric hatch.
Is Volkswagen collaborating with other brands within the VW Group?
Yes, Volkswagen aims to consolidate platforms and production with other volume brands within the VW Group. For example, SEAT is taking the lead in the development and production of VW’s upcoming subcompact EV, and Skoda is leading the development of the next Passat and Skoda Superb models.
More about VW, niche models, Arteon, profits, operational efficiency, core models, complexity
- Volkswagen Official Website
- Volkswagen Group Official Website
- Volkswagen Arteon
- Volkswagen Newsroom
- Thomas Schäfer – Volkswagen Brand Boss