Leading German based vehicle manufacturer Volkswagen AG (ETR: VOW3) says that it will be getting rid of a majority of combustion engine car models by the end of the decade and sell fewer vehicles generally so as to focus on producing more profitable premium vehicles.
This revelation was made by the company’s chief financial officer Arno Antlitz, on April 6 during an interview with the Financial Times Newspaper.
“The key target is not growth. We are more focused on quality and on margins, rather than on volume and market share,” said the CFO.
According to the CFO, Volkswagen will be cutting down its range of petrol and diesel vehicles comprising of more than 100 models spread across several brands by 60% in Europe over the next eight years.
Citing the Financial Times, the company’s new strategy signifies profound changes in the automotive sector which over the past decades has been increasing profits by selling more vehicles each year.