Volkswagen To Scrap Dozens Of Models To Focus On Premium Market: FT - Volkswagen (OTC:VWAGY)

Volkswagen AG VWAGY to discontinue several of its combustion engine models by the end of the decade and sell fewer cars overall to focus on developing more profitable premium vehicles, Financial Times reported, citing the company's finance chief.
"The main goal is not growth, it is us [more focused] on quality and margin rather than quantity and market share," the report quoted CFO Arno Enlitz, reversing the stance taken by former VW executive.
He added that VW would reduce the line-up of petrol and diesel cars in Europe – including at least 100 models across multiple brands – by 60% in Europe over the next eight years.
Related: Volkswagen Posts 38% Sequential Drop In Q1 US EV Sales: Here's How That Compares With Ford, GM
VW's new strategy signifies a significant change in the auto industry, which has spent decades attempting to grow profits by selling more cars each year, even if it means offering enormous discounts, writes FT.
Former Volkswagen CEO Martin Winterkorn, who resigned in the aftermath of the diesel emissions crisis, had set a goal of beating Toyota Motor Corp TM and General Motors Co GM to the "volume number one" spot by 2018.
Price Action: VWAGY shares closed lower by 3.21% at $24.28 on Tuesday.
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