In a move to streamline operating and manufacturing costs and enhance profitability, Volkswagen has decided to discontinue the slow selling VW Arteon, which currently stands as the sole shining star in its product portfolio. Under the leadership of VW CEO Oliver Blume, a comprehensive plan called “Accelerate Forward, Road to 6.5” has been introduced to lower expenses and enhance efficiency. The primary objective of this program is to achieve a 6.5 percent increase in profits, ultimately aiming to generate an additional 10 billion euros in earnings by 2026.

Under the Accelerate Forward plan, VW will reduce the complexity of model variants. and configurations. Production will be optimized for efficiency, which will require new manufacturing techniques. Volkswagen is investing 180 billion euros over five years with much of the budget earmarked for EVs and software development.

When CEOs of major organizations use terms like “efficiencies” and “boosting profitability,” it often implies a strategic focus on cost reduction, which can sometimes involve job cuts. In the case of Volkswagen, the increasing emphasis on electric vehicles (EVs) contributes to this trend since EV manufacturing generally requires less manual labour compared to traditional vehicles.

While VW is not currently reducing its workforce, a significant number of employees are approaching retirement age. This natural attrition may result in a gradual reduction in the company’s workforce over time.