Model cutbacks are imminent
Volkswagen is in the process of transformation: E-cars are becoming increasingly important, combustion engines have to pay for the change. There are also difficulties with the software and the increasing competition. In order to be in a better position, drastic measures have been taken. At VW, many models are put to the test.
Volkswagen is facing difficult times. Therefore, CEO Oliver Blume is planning one radical conversion of Germany’s largest car manufacturer. The different brands should move closer together, a strict austerity course is set. The Core brand VW stands with Audi on restructuring in the centre.
VW wants to lose its feathers: the first cars are put to the test
The volume brands, which include Skoda and Seat/Cupra in addition to VW, are expected to save at least 3 billion euros. The margin is to be increased from 5 to 8 percent. One step on this path will be joint development (source: Handelsblatt).
In addition, the plants should be better utilized in production. Models from one brand could be manufactured in factories from another. For example, the upcoming ID.2 will be built by Seat in Spain – both the Raval version from Cupra, as well as Skoda’s still unnamed compact electric vehicle and the ID.2 from VW.
More drastic than this change is likely to be the plan for VW customers model selection of the volume brands. So should at VW in the medium term ten models Tobe offered. According to ADAC, the Wolfsburg brand currently has 14 different cars, not counting the ID.2 and ID.7 that are not yet available. Since the ID.Buzz is built by VW Commercial Vehicles, it is not included. So it must some popular Volkswagen go.
The ID.7 concludes VW’s electric car series at the top:
At Skoda the VW Group expects about half of the selection from VW. Five, maybe six models should therefore remain. The Czechs are currently building eight series in particular, not counting various body versions.
For Cupra would “three or four cars that are really cool”, enough, the Handelsblatt quotes an internal, unnamed source. What will become of Cupra’s mother Seat is currently still open. It is also said to be different from all surviving models fewer trim levels give.
A start has already been made with the VW Arteon:
Audi sits between the chairs: mid-range or premium, what would you like?
Audi has to make a decision: The premium manufacturer has comparatively low quantities. For this, the Ingolstadt company would have to be at the margin compete with BMW and Mercedes, which has not been the case so far. The new target is 12 to 14 percent.
The Handelsblatt found out about the plans from internal circles at VW. They are to be made public at a shareholders’ event in a few days. Job cuts should not be planned as part of the austerity measures so far.
