The Volkswagen Group is expected to log around billion of euros in cumulated cost savings by 2019, thanks to its new MQB architecture, according to a report written by Stuart Pearson, an auto analyst at Credit Suisse in London. The economies of scale from building over 4.6 million vehicles based on one architecture, the MQB, will result in EUR14 billion in cumulated cost savings for VW Group, Pearson wrote. He quipped that the MQB architecture may be the single biggest cost-saving initiative ever mounted by any automaker. VW Group chief executive Martin Winterkorn remarked that the carmaker will need to recover the substantial development and startup costs for MQB. He noted that in the mid to long term, MQB will deliver substantial savings in unit costs, one-time expenses and the production of VW vehicles. According to Winterkorn, the MQB architecture will result in the reduction of the production time by about 30 percent.
VW may save up to EUR14 billion by 2019 due to use of MQB structure
by Gerald Ferreira, Email, 21 Aug, 2012
Vw MQB Platform
