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Volkswagen Cuts Model Lineup and Capacity as Sales Fall After China Plunge

Volkswagen is cutting its model range and shrinking global capacity after second-quarter deliveries fall about 8.6% to roughly 2.08M, driven by a steep drop in China and rising costs.Chief Executive Oliver Blume says the plan will simplify models by nearly half, cut capacity from 12M to 9M vehicles and require significant job reductions at several German sites, which has prompted protests at the Zwickau plant and demands for clarity from Dirk Panter and Olaf Lies.BMW reported a smaller decline, delivering 590,962 cars in Q2 with China sales plunging 30% to 117,815 while Mini grew, and research firm BernsteinSG questions Volkswagen’s claim to expand technology leadership as Chinese competitors accelerate.
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