Volkswagen will lay "important groundwork to sustainably strengthen its competitiveness" in 2019, the core brand of the Volkswagen Group announced on Wednesday.
The profit margin at its core VW brand slipped to 3.8% a year ago, down from 4.2%, as higher investments into electric cars and challenges getting combustion-engined vehicles certified ate into profits. "We will significantly step up the pace of our transformation so as to make Volkswagen fit for the electric and digital era", said Ralf Brandstätter, Chief Operating Officer of the Volkswagen brand. The world's biggest carmaker needs its gamble to pay off, with its key three brands already showing the strain from higher spending on electric-vehicle technology, alongside trade disputes and weakening markets.
Frankfurt am Main (AFP) - German automaker Volkswagen said it would eliminate up to 7,000 jobs by 2023 as it seeks to accelerate its transition to electric vehicles, although the cuts should be achieved via retirement offers. VW has been pushing to rein in bloated expenses to lift profitability that's trailing rivals.
Back in 2016, VW had launched the last major savings program that will run until the end of next year. "We won't agree to positions being subcontracted", Osterloh told Bloomberg in an e-mail statement.
The company said this will allow it to attain its objective of selling 22 million vehicles powered by electricity and built on its new MEB platform within a decade. He stressed a job guarantee until at least 2025 remains in place with any reductions based on voluntary agreements and called for a labor pact to retrain staff. For the Audi E-Tron and the Porsche Taycan, VW's first two battery cars that are part of a 70-model onslaught until 2028, VW said it has received 20,000 reservations each-with Porsche boosting planned production because of high demand. Instead, VW will unveil the next iteration of Europe's most popular auto at some point after the IAA show in Germany as a move to give the Golf VIII the "exclusivity it deserves".