Volkswagen (VW) will reduce its model range by 50 percent as part of a savings and restructuring program, focusing on the most appealing market segments, the German car giant said in a statement posted on its website.

Also, the company plans to significantly reduce the number of its vehicle equipment options by up to 75 percent. Production capacities will be adjusted in accordance with the changed global situation in the market and significantly increased competition—up to 9 million vehicles per year, the statement said.

It was emphasized that the German carmaker is on the verge of the next phase of transformation, with a plan for the future that will make the company more sustainable, efficient, and competitive.

The VW management on Thursday presented a package of savings and restructuring measures to the supervisory board, which includes 12 initiatives to pull the German car giant out of the crisis, as well as a future development plan.

Earlier, the media reported on VW management's plans to cut up to 120,000 jobs and close four plants in Germany by 2034.