Ford CEO Jim Farley once said core models like the Fiesta, Focus, and Mondeo/Fusion weren’t phased out because they were selling poorly. Instead, these cars were retired because the Blue Oval wasn’t making enough money from them. High production costs ate into profit margins, rendering them unprofitable and ultimately forcing Ford to pull the plug on three of its longest-running nameplates.
Fast-forward to 2026, and the Volkswagen Group is facing a similar issue across its vast portfolio of brands and models. In an interview with German newspaper Bild, CEO Oliver Blume pointed out that the problem doesn’t stem from a lack of demand but from a profitability issue: “Our products are very popular—but we’re not making enough money on them. That’s why we need to further reduce our costs—across all cost categories.”
Read Article