Volkswagen Electrifies Strategy, Streamlines Lineup and Discontinues Arteon Model

German automaker Volkswagen has unveiled its new strategy, “Accelerate Forward | Road to 6.5,” which prioritizes revenue growth to support future technology investments. As part of this plan, the company aims to streamline its vehicle lineup and reduce complexity. Unfortunately, this means discontinuing the Arteon model.

During the works meeting in Wolfsburg, Volkswagen announced its ambitious performance program, targeting a return on sales of 6.5 percent and a €10 billion ($10.83 billion USD) improvement in earnings by 2026. CEO Thomas Schäfer emphasized that the program is the top priority for the entire Board of Management. The company aims to safeguard jobs, finance future endeavors internally, and continue investing in new vehicles, technologies, plant modernization, and staff training.

To achieve these goals, Volkswagen will implement various cost-saving measures in areas such as administration, research and development, material costs, vehicle construction, and product offerings. The program will be overseen by a Project Management Office, which is currently being established. Importantly, the company intends to avoid wage reductions and layoffs, according to Daniela Cavallo, the chairwoman of the General Works Council.

For customers, the strategy will result in a reduced number of vehicles and options within the Volkswagen brand. The company aims to streamline its offerings by cutting down on variants, reducing bureaucracy, and optimizing the yield of its internal combustion engine-based MQB platform and electric MEB platform.

As a consequence, Volkswagen will discontinue low-volume models like the Arteon and shift its focus to core vehicles, as confirmed by CEO Thomas Schäfer. Although there were previous speculations about the Arteon being replaced by the ID.7 sedan, Schäfer officially confirmed the end of the sleek, internal combustion sedan.

Moreover, Volkswagen plans to significantly reduce the number of configuration options available for its vehicles. For example, the upcoming ID.7 will have 99 percent fewer options compared to the seventh-generation Golf.

The Project Management Office is expected to finalize and present the detailed measures of the program in September. Implementation will commence in full swing by October 2023.

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