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

Aaron Cole
by Aaron Cole
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.

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16 of 53 comments
  • Namstrap 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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    • VoGo 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.

  • Jeff S 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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    • Derekson 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.

  • Jeff S 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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    • Dantes_inferno 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.

  • Corey Lewis 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.