Volkswagen is going to scrap models and work more efficiently

These are challenging times for the automotive industry for many reasons. First corona, then the chip shortage, now Euro 7 is in the air and in the meantime we have to work towards a fully electric future. Despite all these things, Volkswagen wants to ensure a healthy profit margin. A 6.5 percent margin on sold cars should become the norm and about €10 billion should come in by 2026. To achieve that, a knife is used here and there in the model range.

Niche models are going to clear the field. Not entirely surprisingly, this means that a line goes through the Volkswagen Arteon. That is currently the only model that is specifically mentioned, but you can count on the fact that in the long run more Volkswagens will remain without a successor. “We will focus on a small number of core Volkswagen models. This reduces complexity and yields higher profits,” says CEO Thomas Schäfer. Not only that, Volkswagen also wants to significantly reduce the number of options. So count on highly simplified order lists. According to Volkswagen, the ID7 is already a good example in that area, which, according to the Germans, will have 99 percent fewer configuration options than the Golf VII had.

Other things from the ‘Accelerate Forward’ strategy are more familiar. For example, Volkswagen says it will focus even more on models developed together with sister brands. MQB and MEB remain the two leading bases and there will be more joint productions such as the compact electric triplets (VW, Skoda and Cupra) and the Volkswagen Passat and Skoda Superb. It also looks at things like administration, technical development, material costs, products, price mix, construction, sales and quality to see how more efficient work can be done. Volkswagen says it does not want to use cutting jobs or lowering wages as a means.

These new plans of the Volkswagen brand are probably a step towards a larger reorganization within the Volkswagen Group. More clarity on this is expected next week.