Volkswagen is going to get rid of dozens of internal combustion engine models and sell fewer cars overall by the end of the decade to focus on producing more profitable premium cars.
“We’re more focused on quality and margins rather than volume and market share,” said Arno Antlitz, the company’s chief financial officer. Over the next eight years, he said, Volkswagen will reduce its lineup of gasoline and diesel cars by 60 percent in Europe.
VW’s new strategy is a sign of profound changes in the broader auto sector, which has struggled for decades to boost profits by selling more cars a year.
A chip shortage caused by the coronavirus pandemic forced automakers to cut production last year. That allowed brands such as Mercedes and BMW to raise prices on their models and make record profits in 2021, despite selling far fewer cars.