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Volkswagen has announced that it is moving towards reducing its model lineup by up to 50% and decreasing its annual production from 10 million to 9 million cars, in order to address excess capacity and improve efficiency amid declining profits, rising competition from Chinese manufacturers, and increased costs. The company is also considering closing four German factories and cutting up to 100,000 jobs, despite ongoing worker opposition to these plans. This represents the largest restructuring in the company's history, as it faces mounting pressure on profits and challenges in securing future funding for its shift toward electric vehicles and new technologies.
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