Volkswagen Group (VWAGY) is preparing to cut half its global product lineup as it fights a crumbling position in China, rising costs, and lagging EV sales.
VW, behind brands like its namesake passenger cars and Audi, Skoda, Bentley, and even Lamborghini, delivered 2.08 million vehicles worldwide in Q2, down 8.6% from a year ago
In China, deliveries plunged 36.6%, to 424,300, as the local market contracted and Chinese rivals kept gaining ground. The rest of Asia-Pacific fell 7.2%. Volkswagen Passenger Cars bore the brunt, shedding 14% globally in the quarter.
Electric vehicles, once billed as Volkswagen’s growth engine, tumbled alongside the broader business. Global all-electric deliveries slid 4.2% in the quarter, to 238,400 vehicles. The steepest drop came in the United States, where EV deliveries tumbled 49% to 5,800 units after federal subsidies expired and new tariffs took hold.