Goodbye Golf? Farewell Fabia? Volkswagen vows to cut back as it gives up on being number one

Volkswagen Group could cut back its model line-up by 60 per cent by the end of the decade.

This is according to a report in the Financial Times, with quotes from Volkswagen AG chief financial officer, Arno Antlitz, indicating that the brand has given up on its previous goal of being the world’s biggest car maker by volume.

“The key target is not growth,” Antlitz told the Financial Times.

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“We are [more focused] on quality and on margins, rather than on volume and market share.”

But that doesn’t necessarily mean the likes of the Golf, Polo or Passat will get dropped to make way for more electric vehicles. Instead it will focus on profitability with better-equipped models selling for a higher price. This is a tactic already seen in Australia with the likes of the Polo now starting at $20k but with more equipment included.

This is a business model we’ve already seen with Skoda in Australia, as well as other brands including Mazda and Hyundai.

This tactic seems likely to spread across the Volkswagen Group - which includes Audi, Skoda and Cupra - as it tries to rationalise the number of models and variants it builds. This coincides with the increased number of EVs, with all VW Group brands expected to add more battery-powered models in the coming years.

We’ve already potentially seen the start of this rationalisation with Audi confirming in February that it will not replace the A1 and Q2 when the current model lifecycle ends.

Volkswagen has stated its goal is to have half of its range electric by 2030, which means less-profitable and niche models will likely be dropped in favour of EVs. 

Speaking to CarsGuide, Volkswagen Australia’s general manager of corporate communications, Paul Pottinger, said it was too soon to name any specific models but conceded change is inevitable.

“In 10 years time you probably won’t recognise our showroom,” Pottinger said. “But 10 years ago we didn’t have the T-Roc or T-Cross and the Amarok was brand new.”

Volkswagen is likely to aggressively expand its ID. range of EVs, with the ID.3, ID.4 and ID. Buzz already confirmed and more based on concepts like the ID. Vizzion (a mid-size sedan) and ID. Roomzz (a large SUV) set to see production by the end of the decade. Rumours of other models, including smaller ID.1 and ID.2 point to a major expansion which could ultimately squeeze out some of VW’s long-serving petrol models by the start of the next decade.

However, given Australia’s slower uptake of EVs, it’s likely this market would be one of the last to drop petrol-powered models as demand is expected to remain strong in the mid-term future.