Tag Archives: profitability

Motorsport

Volkswagen Arteon Is No Longer Available as Volkswagen Implements New Profitability Plan

Volkswagen is implementing a new plan to increase profitability, which unfortunately includes discontinuing certain lower-volume models like the Arteon.

The specific details regarding other low-selling models that will be affected were not disclosed, but the company specifically mentioned the Arteon. The decision to discontinue the Arteon is not surprising, considering that its sales have seen a significant decline of almost 69% in 2022, with only 1,742 units sold in the US. This is a negligible number compared to Volkswagen’s total sales of over 301,000 vehicles in the same period. Although there was a notable increase in Arteon sales during the first quarter of 2023, with over 1,000% growth, this was based on a relatively small number of units sold, just 528.


Volkswagen

Performance program: Volkswagen brand aims to become more efficient and more profitable

Volkswagen is launching a global performance program called “ACCELERATE FORWARD | Road to 6.5” with the aim of improving the brand’s performance and profitability in the long term. The goal is to achieve a return on sales of 6.5 percent and improve earnings by around €10 billion by 2026. The program will focus on streamlining administrative processes, increasing efficiency in development and production, streamlining the model range, reducing the number of equipment variants, and improving product quality. The program will be managed by a Project Management Office (PMO) led by Stephan Wöllenstein and will be implemented in consultation with employee representatives, with a target completion date of October 2023.



Performance programm „ACCELERATE FORWARD | Road to 6.5“

The decision to launch the “ACCELERATE FORWARD | Road to 6.5” program by the VW Board of Management is a response to the challenging market environment and economic situation. The program is a top priority and aims to strengthen the Volkswagen brand and position it for future growth. The ambitious goal of achieving a sustainable return on sales of 6.5 percent by 2026 can be achieved through leveraging synergies, improving efficiency, and becoming more effective across all divisions of the company. Stephan Wöllenstein will manage the program and ensure its successful implementation.

The Management Board and Works Council have also agreed to work together on the common goals of profitability and job security. They are committed to achieving targeted savings without reducing wages or shedding jobs, focusing instead on areas such as Group management, brand cooperation, software development, and product quality. The workforce will be kept informed and involved throughout the process.

The “ACCELERATE FORWARD | Road to 6.5” program will be implemented through major action areas within the brand, including administration, technical development, material costs, products, price/mix, vehicle construction, sales, and quality. Additionally, flagship projects spanning multiple action areas will further increase efficiency and profitability. Examples include focusing on volume models, reducing complexity by eliminating lower-volume models, optimizing plant capacity utilization, and maximizing the potential of the Modular Transverse Toolkit (MQB) and the Modular Electric Drive Toolkit (MEB).

The program will be managed by a lean Project Management Office (PMO) under the leadership of Stephan Wöllenstein. The Brand Board of Management will oversee the program, with individual members leading action areas and flagship projects. The program is expected to be fully implemented by October 2023, following consultation with employee representatives.

The Volume brand group, which includes Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, SEAT/CUPRA, and Škoda, will provide additional synergies and higher returns. Production within this group will be more focused on multi-brand plants and vehicle platforms, maximizing efficiencies and cost savings. The brands will also collaborate on selling expenses and overheads, further optimizing operations.