Volkswagen Sales Slide As China Weakens

Volkswagen reported weak sales numbers on Friday, a day after the giant German automaker announced plans to slash the number of models by nearly half as sales plunged, particularly in China.

The Wolfsburg, Germany-based company said group sales fell 8.6% in the second quarter to just under 2.1 million vehicles, with sales in China alone plummeted by more than one-third.

After a board meeting on Thursday, Volkswagen said its “fundamental realignment” over the last three years had reached its next phase, announcing plans to streamline the model lineup by up to half, without providing specifics.

CEO Oliver Blume laid out plans to make VW faster and more competitive through less complexity, focused technologies, better alignment across regional markets and reduction of overcapacities, among other things, citing an “increasingly demanding environment.” Among its main brands, the core Volkswagen unit saw deliveries of slightly over 1 million vehicles in the second quarter.