VAG values quality more than quantity. Yes, and larger profit margins.

It seems like every automaker is trying to move upmarket. This could explain why Dacia, a low-cost brand, is so popular. The Volkswagen Group, not just the VW core brand, is next to push into a higher class by improving the quality of its products. It wants to concentrate on fewer models and eliminate 60 percent of the combustion-engined vehicles in the next eight years.

Arno Antlitz, the finance chief of the company, made this important disclosure in an interview with Financial Times. He stated that growth is not the key goal. We’re more focused on quality and margins than volume and market share. This process will target Europe, where VAG has over 100 models across its many brands.

This change could be argued to be already underway, considering Skodasare almost as expensive than their VW counterparts. The German automobile conglomerate has seen significant price increases in recent years. This trend is likely to continue. It makes sense that the company is signaling the end of gasoline- and diesel-powered cars by releasing more EVs.

By 2030 there will be fewer ICE-powered VAGs available. Hopefully, the decision to go upmarket will reflect not only the asking price but also the product’s quality. The large-displacement engines are most at risk due to stricter emissions regulations. This is why the W12 will be gone until the end. Bentley will be EV-only by 2030, just to refresh your memory.

The VW Group is likely to abandon the race for world’s largest car manufacturer in volume by following this path. It sold 9,305,000 units in 2021 while Toyota shipped 10,495,548 vehicles. If we are only talking about Europe, VW was first with 3,158 559 vehicles, and Stellantis came in second with 3,081,590.