en.Wedoany.com Reported - Volkswagen is considering producing China-specific models at its German factories to address current challenges and cut costs. Volkswagen CEO Oliver Blume proposed this idea during the first-quarter earnings call on April 30 and has already begun advancing related plans.
As part of what Blume calls "the most comprehensive restructuring in the company's history," Volkswagen will cut approximately 50,000 more jobs on top of the roughly 37,000 positions already eliminated since 2024. At the same time, the company is evaluating several ways to leverage its ties with China to reduce production costs.
According to Automotive News Europe, sources indicate that Volkswagen may take three measures to fill production lines and improve efficiency. The first measure, and the one clearly favored by top management, is to use Volkswagen's upcoming China Scalable Platform (CSP) for global models, even though the platform will not support vehicle production in China until 2028. Volkswagen has joint ventures with Xpeng, SAIC, and FAW in China and may rely on these partners during the transition. This potential plan has raised concerns among Volkswagen employee representatives, who say the brand's engineering team in Wolfsburg should be responsible for developing new vehicles.
The second possible measure is to have the China-specific Volkswagen ID. Era 9X replace the VW Touareg, which has just been discontinued in Europe. This extended-range electric SUV is a six-seat model built specifically for China, developed jointly with joint venture partner SAIC. Compared to other Volkswagen electric models, it has been relatively popular, and reports say executives believe it can fill the market gap left by the Touareg in Europe.
Another less likely option is for Volkswagen to produce Xpeng models at its German factories. Given that Volkswagen holds a 5% stake in Xpeng and that the Xpeng G6, G9, and P7+ have already been imported into Europe, this direction is potentially feasible. However, Automotive News Europe, citing sources, considers this unlikely, noting that executives see no value in becoming a contract manufacturer for Chinese electric vehicle brands.
Volkswagen is also expected to significantly reduce its global model lineup. According to German newspaper Bild, a large number of models across all its brands will not be carried over to the next generation.
