Volkswagen reducing the number of engines, models to fund EV push

MQB will underpin up to 80 percent of the Volkswagen catalog.

Volkswagen will fund its growing electrification offensive by saving money on other vehicle programs. The Wolfsburg-based firm will notably reduce the number of platforms, engines, and transmissions it needs to build its cars, and it will streamline its global line-up of models.

"There is to be a massive reduction in the complexity of the model portfolio," Volkswagen wrote in a statement. It didn't name the models it will send to the chopping block, but it pointed out it will discontinue 25 percent of its least popular engine-transmission combinations in the coming year. So far, the announcement applies to the European market.

Automotive News learned that entry-level models will only come with a manual transmission and front-wheel drive. An automatic gearbox and all-wheel drive will no longer be available. And, looking ahead, up to 80 percent of the Volkswagen line-up will ride on the modular MQB platform. That figure stands at about 60 percent in 2018.

The cost cuts are bigger than previously expected, Automotive News pointed out. They will streamline Volkswagen's production process while allowing it to save money. 

That last point is crucial, because the company wants to widen its profit margin to six percent by 2022. Currently, its profit margin stands at approximately four percent. At the same time, it will invest over 11 billion euros (approximately $12.5 billion) into the development of electric, autonomous, and connected cars by 2023.

Photo by Ronan Glon.