Niche models like the recently discontinued Volkswagen Arteon are gone. Director Thomas Schäfer admits that the brand can no longer afford them.
Volkswagen is dropping niche models. There's simply no room for that kind of thing anymore. That's why a car like the Arteon won't get a successor.
The group estimates that there are no longer resources to invest in car models that only a small part of the market buys.
According to CEO Thomas Schäfer, Volkswagen will not launch niche models or models with low sales figures, because the brand has established a "perfect model program".
This is what Autocar writes.
The German brand does not believe that it currently "has the money to gamble" with cars that do not contribute to the bottom line.
The boss admits: The money is not there
This indicates that the Arteon and T-Roc Cabriolet will not be renewed with a facelift or a completely new generation.
Schäfer has more than hinted that significant challenges in launching such cars, including concerns about whether the investment can be kept at home, are reasons for "the same debate every year" at VW management.
Furthermore, they are cutting back on 'small' production when it comes to keeping profits at home on the 'core business'. These are cars like the Golf, Touareg and ID. models.
– We need to invest in hybridization, Euro 7 and beyond.
– It's a big task to be able to afford it all. You have to keep your portfolio – the core – together and keep track of the niche products.
– We used to have a lot of niche products, and I'm not saying we won't bring them back, but not at the moment. We have to keep the main business healthy. That's the main focus, says Schäfer.
However, the former Skoda boss suggests that it is not a clear-cut approach and that consideration is being given to which niche models can be added in the future if or when financial problems are resolved.
– What else can we add? The core is clear. What we have in our portfolio now, I think, is really core, from the small hatchbacks to the SUVs, all the way up to large SUVs and estate cars.
– But you know, more niche cars like the Scirocco used to be, like the Touran used to be. Those cars have a place in our overall view of things.
Volkswagen will thus concentrate on the models that generate the most money here and now, and the models that they are obliged to produce due to legislation. The electric cars.
One of the primary reasons why niche models are now disappearing is not just the small customer base. It is also related to the fact that Volkswagen has to spend money to meet increasingly stringent emissions requirements.
Furthermore, the EU requires car brands to generally build more electric cars. Even if there are not necessarily more buyers for them. Read more about it here .
