Key facts
- Automakers are reducing the number of models and variants offered.
- Companies are simplifying vehicle designs to use fewer parts.
- Shared technology and production costs with partners are increasing.
- Volkswagen aims to cut its model lineup by 50% and product complexity by 75% by 2030.
- Ford is developing a Universal EV platform to simplify production.
Automakers are increasingly focused on reducing complexity and costs across their operations, a strategic shift driven by the rise of lower-cost Chinese competitors and the financial strain of electric vehicle development. This industry-wide 'decluttering' involves pruning overlapping models, simplifying vehicle architectures to use fewer parts, and increasing the sharing of technology and production expenses with partners.
Executives from major automotive companies have publicly acknowledged the issue. Volkswagen CFO Arno Antlitz stated the company has "too many models" and plans to reduce its global lineup by up to 50% and product complexity by as much as 75% by 2030. Toyota CEO Kenta Kon also highlighted that an increasing number of vehicle specifications and variants are driving up costs.
This strategy is manifesting in product decisions, such as Ford discontinuing the Escape while keeping the similar Bronco Sport, and Chrysler phasing out the Voyager in favor of the nearly identical Pacifica minivan. Beyond model reduction, companies are also redesigning vehicles to be built with fewer components. Ford's Universal EV platform, set to debut with a $30,000 electric pickup in 2027, is designed for reduced parts and manufacturing steps. Stellantis, Nissan, and Rivian are also developing modular systems and platforms aimed at lowering production costs through shared components across different vehicle types.