After many profitable decades, China is no longer a cash cow for legacy automakers. For several years now, virtually all Western brands have been on a slippery slope in the world's largest car market. It's not just that the gravy train has come to an end. The meteoric rise of Chinese brands is beginning to have a noticeable impact in other parts of the world as well. Last month, the likes of SAIC, BYD, and Geely reached a combined 10.9 percent share of Europe's new-car market, according to Dataforce figures cited by Automotive News Europe.
Long-established automakers are trying to fight back with a rapid influx of new models, but they know that won't be enough to satisfy executives and accountants. Drastic cost-cutting measures are necessary, and the Volkswagen Group has been the most vocal about how it plans to become a leaner, more efficient automaker. It has announced plans to effectively gut its product portfolio by eliminating up to half of its models.
