Volkswagen announced a plan to halve its model lineup and trim manufacturing capacity, building on a prior commitment to billions of dollars in cost savings and 35,000 job cuts in Germany.

Chief Executive Oliver Blume warned that the coming years will be critical, stressing the need for efficiencies beyond earlier plans as the company confronts muted vehicle‑delivery volumes and a volatile market.

The Transition focuses on the most attractive market segments, adjusting the production network to current realities and reducing the overall model range by up to 50%.

The move tightens cost structures, narrows the product portfolio, and may ripple through supplier contracts and shareholder expectations as VW seeks to stay competitive against rising Chinese competitors in Europe.