Volkswagen is planning to axe lower-volume models such as the Arteon saloon and estate amid new profitability plans.

Lower-volume models such as the VW Arteon will be discontinued

Speaking yesterday, CEO Thomas Schäfer said the new Accelerate Forward ‘performance programme’ was the number one priority for the board and would put the focus on volume models.

“We will focus on a small number of – though genuine – Volkswagen core models. This will reduce complexity and deliver higher profits,” he said.

The end date for the Arteon hasn’t been confirmed, nor the other models that will be cut from the line-up.

But Schäfer said the brand would also reduce the number of variants being offered. In the case of the forthcoming ID.7 electric saloon, this means 99% fewer configuration options compared to the seventh-generation Golf.

VW will also seek to optimise plant capacity utilisation, increasing profitability and enabling it to respond more flexibly to fluctuations in demand and the market in the future.

Schäfer said the work would help the brand to become more efficient and more profitable, significantly improving earnings by €10bn (some £8.57bn) and enabling a 6.5% return on sales in the Volkswagen brand.

“Achieving this in 2026 is very ambitious, but feasible if we pool our efforts. This will enable us to safeguard jobs, finance our future from our own resources and continue to invest in new vehicles and technologies, in the modernisation of our plants and in staff training.”

The group has said there is also further synergy potential among its volume brands: Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, SEAT/Cupra and Škoda. Examples include work to steer production to multi-brand plants and vehicle platforms in the future, while also enhancing the focus on the joint development and production, as seen with the Volkswagen Passat and Škoda Superb.