Volkswagen ID5, Audi Sportbacks and Porsche variants could face the axe amid VW’s financial struggles

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Volkswagen Group has outlined a plan to discontinue half of the approximately 150 models it offers, including the slow-selling ID5, Audi’s much-loved Sportback models and dial back Porsche’s customisation, as it contends with American tariffs and Chinese competition. 

Figures announced by the German conglomerate on Friday revealed deliveries in the first half of 2026 dropped six percent versus the same period last year. A severe 26 percent drop in Chinese deliveries was only partly countered by growth in Europe and South America.

A 75 percent reduction in product complexity (optional extras and vehicle variants) is also targeted. Though Volkswagen itself, Škoda, Cupra and Audi will not be dramatically affected, alarm bells may be ringing at stablemate Porsche, which derives substantial profits from allowing customers to extensively – and expensively – individualise its cars.

Niche models will be phased out. Notably, Automotive News Europe reports coupé-crossovers are singled out, with VW to axe the fully electric ID5 medium SUV and not-for-Australia Taigo small SUV. Audi is said to place Sportback variants of its Q3, Q4, Q5 and Q6 SUVs on the chopping block. 

Sources differ on whether the Porsche Cayenne Coupé will join them, as well as the number of jobs at risk; though some claim 100,000, Bloomberg reported a more conservative 50,000 on 14 July.

Volkswagen’s financial report for the first half of 2026 will emerge on 24 July, but in a statement CFO Arno Antlitz said that existing cost-cutting plans have been insufficient.

As Volkswagen’s board of directors includes labour unions and the state government of Lower Saxony, factory closures and layoffs are uniquely hard to approve. Instead, Automotive News Europe reports VW CEO Oliver Blume is focussed on increasing profit margins to 8-10 percent instead of large-scale cuts. 

Blume’s plan remains just that – a plan – as only seven members of Volkswagen’s 19-member board approved of it. In an interview with German tabloid Bild, he appeared to dispel reports that four German factories would shut.

Škoda and Cupra, whose line-ups are broadly profitable, will be largely spared, though Cupra’s parent company SEAT, whose line-up is essentially a cheaper duplicate of Cupra’s, faces extensive overhaul or may even be wound up.

The many derivatives of Porsche’s models – 25 for the Cayenne alone – are in the accountants’ sights to streamline development, certification and production, while the Taycan and Panamera sedans may merge into one model.

Notably, Porsche’s beleaguered new 718 sports car is still on track, partly because cancelling it would violate a deal with Audi, who needs the platform for the production version of its Concept C.

Porsche Australia declined to comment on the specific situation when approached by Chasing Cars, while Volkswagen Australia told us there was “no immediate impact on Volkswagen’s operations or presence in Australia” and they would “work closely with our headquarters in Wolfsburg…to assess what adjustments – if any – may be needed at the local level.”