Top News

Porsche 718 and Next-Gen Taycan Could Be Dropped as Volkswagen Group Pursues Major Cost Cuts: Report
Priya Nambiar | July 14, 2026 3:36 PM CST

The rapidly changing dynamics of today’s automotive industry are creating major challenges even for the biggest global manufacturers. Declining sales and persistent profitability problems have prompted senior executives at the Volkswagen Group to take a hard look at their operations. While earlier reports hinted at large-scale job cuts and potential factory closures, CEO Oliver Blume has now started to outline his perspective on scaling back the model lineup—and as per new reports, that could mean some of Porsche’s most beloved cars are at risk.


As discussions intensify between Volkswagen’s supervisory and management boards regarding future layoffs, Blume appears to be shifting focus away from completely shutting down plants. Instead, he is emphasizing reducing costs within the company’s domestic production facilities. Speaking to the German newspaper BILD, Blume revealed that Volkswagen has already managed to lower factory-related expenses by an average of 20 percent, and further reductions are key to improving profits. “Our products are very popular—we just don’t make enough money from them,” Blume told BILD. “That’s why we must continue to cut costs—across all areas.”


Porsche’s recent financial performance has been under strain, with operating profits dropping by 99 percent in 2025. Given that backdrop, it’s not surprising that Porsche could be affected by Volkswagen’s upcoming restructuring. According to the same BILD report, models such as the Taycan, the Cayenne Coupé, and the internal combustion-powered 718 Boxster and Cayman replacements could face cancellation.


Even the flagship 911 might not be completely immune to the company’s streamlining efforts. While the rear-engined sports car isn’t going anywhere, reports from Automotive News suggest Porsche may cut down on the number of 911 variants available. The current lineup includes dozens of configurations, each requiring significant investment for development and validation. Reducing some of these versions could help save money without deeply alienating the brand’s loyal enthusiasts.


“In the future, we want to increase sales volume per model,” Blume told BILD. “To achieve this, we are systematically simplifying our product portfolio.”


Porsche isn’t the only brand within the Volkswagen Group facing potential model reductions. The report also claims that Volkswagen, Škoda, Cupra, and Seat may abandon planned successors to models such as the Jetta, Taos, Fabia, and Raval. Audi, too, might be affected, with reports indicating that the Q6 E-tron Sportback and Q5 Sportback could be axed.


Over the last two decades, the Volkswagen Group has often been seen as one of the strongest players in the global automotive industry. However, increasing competition, supply chain instability, regulatory pressures, global trade disruptions, and the rise of Chinese carmakers have severely impacted traditional automakers. For Oliver Blume, steering Volkswagen back to its former position as an industry leader will be a formidable challenge.


READ NEXT
Cancel OK