Volkswagen Group is preparing to trim its vehicle range substantially while removing 50,000 roles under newly introduced corporate restructuring plans.

The company’s Supervisory Board has ‘unanimously approved’ the new ‘Future Plan 2030’ strategy as it seeks to reduce expenditure in response to rising market rivalry from China.

Consequently, Volkswagen intends to contract its car model lineup by roughly 50 per cent. It also intends to ‘reduce its offering complexity’ – decreasing trim options and specifications – by about 75 per cent.

The carmaker will downsize its workforce by approximately 50,000 positions. As this step is ‘beyond existing programs’, previously planned job cuts will continue to be rolled out as they were scheduled.

Plants in Emden, Zwickau, Hannover and Neckarsulm in Germany will be phased out of auto production in 2031-34, although alternative uses will be explored. The board statement said there would be an “adjustment of the employee numbers of around 50,000 positions,” including management jobs.

Oliver Blume, Volkswagen Group CEO, said: “The Supervisory Board has unanimously approved the Executive Board’s Future Plan presented today. This is a strong sign for the future of the Volkswagen Group. We are taking responsibility for our entire team, for our partners and for industrial jobs worldwide.

“Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”

The Group is also looking to develop both its North American and Chinese areas of business, with the former being one of its “most profitable segments”.

Hans Dieter Pötsch, chairman of the supervisory board, said: “With the Future Plan now approved, the Supervisory Board and Executive Board of Volkswagen AG have shown that the company’s transformation is being driven forward with full force.”

Thursday’s news release was accompanied by a statement from chief employee representative Daniela Cavallo that the plan was “a necessity for our company to move successfully into the next decade without the associated undertakings coming only on the side of the employees.” Cavallo had been strongly critical of the plan when it was presented over the summer.

Grappling with high costs and excess capacity at home, rising Chinese competition, and US import tariffs, Volkswagen has been under unprecedented pressure to restructure the business model that underpinned its success for decades.

Volkswagen, which has around 650,000 employees, reported a 30 per cent drop in after-tax earnings for the first half of the year as sales took a hit in China.