VAG currently has a total of 340-ish models across its catalog.

According to German newspaper Handelsblatt, the Volkswagen Group is planning to axe in excess of 40 models from its expansive portfolio. However, a company spokesman told Automotive News the number of vehicles facing the axe has not been established yet, but he did admit some of the models will be terminated.

It’s too soon to say which of the cars will be eliminated from the portfolio, although one of the cars is expected to be the Beetle. A rumor which emerged back in April said VW will discontinue the bug towards the end of 2018, although that piece of gossip has yet to be confirmed by VAG. You can imagine the most vulnerable models are the slow-selling ones, as the Volkswagen Group wants to optimize its lineup and keep the cars which bring in the most cash.

The latest news follows an announcement made late November last year when VAG revealed it will reduce the number of versions and trim options to save $2.1 billion (€1.9B). In addition, the plan is to lower bonuses given to senior executives as a method to have access to additional funds as it faces the ongoing Dieselgate.

While some models are about to be retired, others are in the pipeline. These include the long-wheelbase Tiguan and the production-ready CrossBlue. In addition, VW is preparing a plethora of electrified vehicles and has set a bold objective to sell one million hybrids and pure EVs by 2025.