Yikes: Volkswagen Group Could Cut Up to Half Its Models Worldwide

What's new: The Volkswagen Group could cut up to half of its global models as part of a new business plan.
Why it matters: Reports indicate that as many as 100,000 jobs could be cut, and products from brands like Volkswagen, Audi, Porsche could get the axe.
Edmunds says: What this means for the VW Group's U.S. portfolio is unclear.

The Volkswagen Group released an ominous statement about its future business plan on Thursday, which could see up to 50% of the company's products being cut. The automaker will focus on "the most attractive market segments" and streamline its entire product portfolio in an effort to reduce its total global production.

Volkswagen Group CFO Arno Antlitz said the company will "realign [its] business model and achieve structural, sustainable improvements. ... We can only achieve this by substantially reducing complexity — in our product portfolio and technology platforms, in the number of units and decision-making levels."

Beyond reducing the number of overall products, Volkswagen plans to simplify its remaining model lines. "[O]ffering complexity — for example, the number of available equipment options — will be reduced by up to 75%," the company said in a statement.

VW Group officials did not specifically mention anything about global job cuts. However, sources familiar with the company's plans told Reuters that as many as 100,000 positions could be eliminated.

The VW Group consists of many brands, including Volkswagen, Audi, Porsche, Lamborghini and others. What this news means for each of these automakers' individual U.S. lineups is unclear at this time, but we fully expect slower-selling models to get the axe — and soon.

Yikes: Volkswagen Group Could Cut Up to Half Its Models Worldwide

VW's future business plan focuses on the "most attractive market segments"