Volkswagen plans to chop area of interest fashions just like the Arteon hatchback and wagon to enhance effectivity of its operations and in flip increase income, the automaker mentioned on Wednesday.

The brand new technique, which goals to enhance earnings by 10 billion euros (roughly $10.8 billion) and develop return on gross sales to six.5% by 2026, with out slicing jobs or wages, was introduced by VW model boss Thomas Schäfer at a gathering held with unions at Volkswagen Group’s headquarters in Wolfsburg, Germany.

“We are going to give attention to a small variety of—although real—Volkswagen core fashions,” he mentioned. “This may scale back complexity and ship increased income.”

Schäfer did not present a timeline for the discontinuation of the Arteon, however it would possible be when VW begins manufacturing of the same 2025 ID.7 electrical hatch (and soon-to-be wagon) on the Arteon’s plant in Emden, Germany, across the finish of the 12 months.

2021 Volkswagen Arteon R

Schäfer did not say which different fashions may very well be dropped.

A U.S. VW spokesperson confirmed the Arteon will survive into the 2024 mannequin 12 months, however did not say whether or not there will likely be subsequent mannequin years for it.

Along with dropping fashions, VW may even look to scale back the variety of choices and variants inside remaining mannequin strains. This may begin with the ID.7, which VW mentioned can have a lot fewer configuration choices in comparison with the present Golf.

There may even be additional consolidation of platforms and manufacturing with different quantity manufacturers inside the VW Group. An instance of that is VW’s upcoming subcompact EV previewed earlier this 12 months by the ID.2all idea automobile. VW mentioned fellow VW Group model SEAT is taking the lead on the automobile’s improvement and manufacturing, in addition to with related fashions from Skoda, SEAT, and Cupra. Equally, Skoda has been made the lead for VW’s subsequent Passat and the associated Skoda Very good.