Volkswagen aims to further cut brand costs due to lower sales in Europe

Article by Anita Panait, on September 27, 2013

Volkswagen needs to further reduce costs at its namesake passenger car brand at all levels, departments, regions and plants to better offset the effects of slumping sales in Europe. Arno Antlitz, VW brand board member for accounting and controlling, told 18,000 employees at a meeting in Wolfsburg, Germany that the German company needs “solid earning power and a competitive cost position."

He said that the VW brand's diversified regional presence is a competitive advantage and will be expanded further. He noted that the carmaker was able to “invest record sums” in future projects in spite of the crisis.

The German carmaker managed to stay afloat and remain profitable despite the still weakening vehicle industry in Europe, mainly thanks to large presence in China and profits from upscale brands like Porsche and Audi. The VW brand passenger car division posted a 34-percent drop in operating profit in the first half of 2013 to EUR1.49 billion ($2 billion).

VW’s group sales declined 5 percent in the EU and EFTA markets in the first eight months of 2013, similar to the drop logged by the auto industry in the regions, according to industry association ACEA data. VW brand sales dropped 8 percent in the period. VW last week dismissed a report by Manager Magazin that it might fail to achieve its financial targets.

The magazine, publication citing company sources, reported that VW’s profits are undermined by higher-than-expected costs for a new modular production architecture MQB. VW disclosed earlier this month that it targets to raise profitability at its volume brands even if it remains unsure when the European vehicle market will recover.

If you liked the article, share on:

Topics: vw, europe, sales

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries