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This photo provided by Edmunds shows a lineup of used vehicles at a Nissan dealership in Fresno, Calif. Certified pre-owned vehicles cost more but deliver added peace of mind through inspections by factory-trained technicians, automaker warranties, and more. (Courtesy of Edmunds via AP)

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Volkswagen’s board has approved a major cost-cutting plan to counter low-cost competition in China and U.S. tariffs. The plan, presented by CEO Oliver Blume, includes cutting 50,000 jobs, halving the model line, and ending production at four German plants. The board overcame resistance from employee representatives and the regional government. The plan aims to make Volkswagen's brands more attractive and competitive. It also foresees reducing models by 50 percent and exploring alternative uses for affected plants. Chief employee representative Daniela Cavallo calls the plan necessary for the company's future success. Volkswagen has reported a 30% drop in earnings for the first half of the year.

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A car moves past a sign displaying gasoline and diesel prices in U.S. dollars per gallon during the Pacific Islands Forum Leaders Meeting in Koror, Palau, Sunday, Aug. 30, 2026. (AP Photo/Charlotte Graham-McLay)

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FILE - The 2026 Honda Prelude is showcased at the LA Auto Show in Los Angeles Thursday, Nov. 20, 2025. (AP Photo/Damian Dovarganes, File)