VW sales plummet as automaker eyes drastic brand cull to cut model lineup in half

Volkswagen Group reported a brutal 8.6% drop in global sales during the second quarter, with deliveries falling to just under 2.1 million vehicles. The decline was led by a catastrophic 33%+ slump in China, where rising tariffs, regulatory pressure, and cutthroat competition hammered demand. Core brand Volkswagen saw a 14% year-over-year drop to slightly over 1 million units, while Audi deliveries fell 8% and Porsche slid 18%. Only Lamborghini, Škoda, and the commercial vehicles division posted gains. The company’s restructuring push, dubbed a “fundamental realignment,” now enters its next phase with plans to slash the model lineup by up to 50%, though no specifics were provided. CEO Oliver Blume framed the move as a bid to slash complexity, align technologies globally, and slash overcapacity amid what he called an “increasingly demanding environment.” The announcement came just one day after hundreds of workers protested outside VW’s Zwickau plant, now fully converted to EV production, demanding job protections and opposing potential site closure. Analysts remain skeptical, with BernsteinSG questioning VW’s claim of maintaining technology leadership given the rapid pace of innovation from Chinese rivals. The group’s broader challenges include geopolitical tensions, tariff-driven cost inflation, and tightening regulations across major markets.