Volkswagen Cutting $2B By Eliminating Trims, Editions and Probably This Too

by Aaron Cole

December 29th, 2020 11:40 AM

volkswagen cutting 2b by eliminating trims editions and probably this too

It’s hard not to look at the newly announced Volkswagen Beetle Dune and hear at the same time that Volkswagen will be saving $2 billion by cutting unnecessary trims and variants from their lineup.

I mean, it’s like they’re not even giving the little guy a chance.

Nonetheless, Bloomberg ( via Automotive News) reported Friday that Volkswagen will axe trims and variants of its cars to reduce complexity and cost from its lineup to help pay for the company’s massive emissions scandal. Bernd Osterloh, Volkswagen’s labor chief, told journalists Friday that the company has needed to trim some of its fat for a while, apparently.

“We from the works council have long flagged the huge range of model variants and different components,” Osterloh said, according to Bloomberg. “That brings enormous complexity and adds to costs, for example, for logistics. We can take out costs there on a large scale and don’t have to talk about job cuts.”

The company is looking for ways to trim costs — rather than trimming jobs — to help pay for its emissions scandal.

In September, the company admitted that 11 million diesel cars worldwide were illegally polluting nitrogen oxides — in some cases up to 25 times the legal limit. In October, the company admitted that 800,000 cars in Europe were sold with false carbon dioxide estimates. In November, U.S. regulators notified the company that 85,000 more diesel cars in the U.S. illegally cheated through emissions.

Already, Volkswagen has set aside $8 billion to pay for the crisis so far.

#BerndOsterloh #Emissions #Production #Trims #Volkswagen #VwDieselScandal

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16 of 53 comments

Namstrap on Nov 28, 2015

The VW Up! small car for Europe was originally designed to have a rear engine. The FWD parts bin was cheaper and handier, so it became like a small Golf or small Polo. It has won awards over there.

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- Kyree on Nov 28, 2015
  
  Shame that it wasn't rear-engined. The only rear-engined cars I can think of are the 911 and the Smart Fortwo. That definition expands a little bit if you consider electric cars like the Model S and the BMW i-Series, but we could still use more rear-engined cars.
  
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- VoGo on Nov 30, 2015
  
  @Kyree VW went with a front engine design in the Up! because it was more stable at speed and in wind.
  
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Jeff S on Nov 28, 2015

I don't think bringing over the Amarok will save VW in America. VW needs a good crossover and much better reliability otherwise they are wasting resources.

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- RobertRyan on Nov 28, 2015
  
  @Jeff S, It does not make much of a dent in the bottom line for VW here. There Commercial vehicles may though
  
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- Kyree on Nov 29, 2015
  
  Not even better reliability, so much. In my experiences, which include Internet marketing for a VW dealership and being a three-time VW owner, most people don't even know enough about cars to even be wary of VW's reputation. It's just that VW's cars can appear a bit threadbare and overpriced compared to those of competitors...and that may turn quite a few buyers off. VW could stand to add a bit more pizzaz and features to its cars. The Golf, for example, should be available with blind-spot monitoring.
  
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- Big Al from Oz on Nov 29, 2015
  
  RobertRyan, I do believe the VW US could benefit with a better lineup of their commercials. The Amarok does pose a problem........the uncompetitive chicken tax. For VW to get a foothold in the US pickup market imported pickups are a must. VW does have gasoline engines suitable for the Amarok as well. With VAGs current "cash flow" issues I don't see VW spending billions on a pickup manufacturing facility and hoping to sell 100 000 Amaroks a year to make it viable. This is sad. I suppose this is what is termed freedom of choice and trade by some who comment on TTAC.
  
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- DenverMike on Nov 29, 2015
  
  @Big Al from Oz VW selected the lineup, best suited for the US market. That's no Scirocco, no Gol, no Caddy and no Amarok. No US conspiracy necessary. Each one missing would cannibalize the existing VW lineup. It makes zero sense to throw everything they have at every market. They'd end up spinning their wheels for far less revenue. With the Amarok's lack of low-range 4X4, it'd be squarely against the Honda Ridgeline, for those specifically looking for a midsize pickup. It's still a shame for anyone obsessed with getting a VW pickup, but what about those that dream of a VW Gol?????? THE HUMANITY!!!!!!!!!!!
  
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- Derekson on Nov 30, 2015
  
  @Kyree You can get blind spot monitoring in the Driver Assistance Package in 2016 Golfs and Golf Sportwagens. It's available on SE and SEL models and includes adaptive cruise, automated park assist, blind spot monitoring, etc. It's really not too bad at $1500 for all of these tech features either, and many of those aren't available in other cars of this size/price class.
  
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Jeff S on Nov 29, 2015

@Robert Ryan--I don't have any problem with VW selling the Amarok but I don't think the incremental amount of sales from the Amarok is enough to save VW in America. VW needs to offer some more crossover models in subcompact, compact, and mid size. @Kyree--You would know about that more than I would but the few VW owners I know are plagued with electrical problems especially electric windows. Usually those that own the TDIs like the engines but they are plagued with a host of other problems that you do not see typically in a Toyota, Honda, Kia, or Hyundai. German cars do not have the best reputation for electrical problems. I have a nephew that works in a BMW dealership that says that the new models have many electrical and computer problems. You are correct in that the VWs are not as competitive in price as the competition. VW could take a page from Hyundai and Kia in adding a little more piazza to their vehicles. The also could use some competitive crossovers to appeal the the CRV, RAV 4, Escape, Equinox, and Encore customers. Another compact and midsize sedan will not be enough in an already crowded field of like vehicles.

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- Whatnext on Nov 29, 2015
  
  That's strange. I'm a first time VW owner and haven't been plagued by a host of anything. The fuel guage went tit's up but in 4 years I don't consider that a "plague".
  
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- DenverMike on Nov 29, 2015
  
  @Whatnext You should play the lottery.
  
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- Lon888 on Nov 30, 2015
  
  @Whatnext Let's see in the 4 years I've owned my brand new 2012 GTI I've had to replace the fuel pump ($650), the intake manifold (warranty repair), 3 sets of rear anti-roll bar links ($50 a set). Add in the synthetic oil, premium gas, special brake fluid and special coolant you've got a car that can be expensive to own.
  
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- VoGo on Nov 30, 2015
  
  @Whatnext Next time you change the oil, trying adding some piazza - like Hyundai and Kia do.
  
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- Dantes_inferno on Dec 01, 2015
  
  @lon888 >Let’s see in the 4 years I’ve owned my brand new 2012 GTI I’ve had to replace the fuel pump ($650), the intake manifold (warranty repair), 3 sets of rear anti-roll bar links ($50 a set). Add in the synthetic oil, premium gas, special brake fluid and special coolant you’ve got a car that can be expensive to own. Precisely why I decided to restore my 1997 Jetta by adding a 1997 Audi 1.8T with forged internals, with PORT injection, K04 turbo (google BFI Mk3 1.8T conversion) and Integrated Engineering's ALUMINUM intake manifold - all on a chassis in the 2500 lb range - simplicity. Especially in light of the "marvels" of the direct injected engine on lon888's 2012 GTI: High-pressure fuel pump ($650) Plastic Intake Manifold (under warranty) and possible walnut shell blasting of the intake ports/valves to remove excessive carbon (to name a few). The greater the complexity, the more components that could possibly fail. No thanks.
  
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Corey Lewis on Dec 02, 2015

I propose we extend the words "trims and variants" to include the CC and the Tiguan, and the Eos.

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