In a first step, costs are to be reduced and the group structure reorganized, reports the Handelsblatt, citing group circles. “We have to act, otherwise we will lose touch with the competition,” a top manager told the newspaper. The board of directors will deal with the issue on Tuesday. The key data will then be presented to investors on June 21 at a capital market day.
According to the Handelsblatt, the greatest need for action is seen at Audi and the core brand VW. The so-called “volume brand group” alone, which includes VW, Skoda and Seat own, must increase their earnings annually by about 3 billion euros. Duplicate development work should be curbed and the German plants should be better utilized. In addition, short-term savings in purchasing and sales are planned. Group-wide, the announced increase in earnings should add up to more than 5 billion euros.
When asked by VW, it was said that CEO Blume had introduced a “consistent 10-point plan” since taking office, which addresses the most important operational and strategic issues for the group. “He has been implementing this plan together with the Group Board of Management and the brand managers since then,” said a spokesman. This included decisions on the further development of mobility solutions, the realignment of Cariad and the introduction of a performance program for the VW brand. VW did not want to comment on the amounts specifically mentioned by the Handelsblatt, for example on the increase in earnings.
The VW share gains 1.28 percent to 127.90 euros in XETRA trading at times.
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