Volkswagen Brand Increases Productivity, Pursues Cost Savings
26 September 2019 - 8:29PM
Dow Jones News
By Kim Richters
Volkswagen AG's (VOW.XE) namesake passenger car brand said
Thursday that it is on track for more cost-effective vehicle
production as it continues to pursue savings through efficiency and
personnel measures.
The car maker said that its overall plant productivity will have
increased by more than 6% in 2019, saving the company around 500
million euros ($548.9 million). It previously expected an
improvement of 5%.
For "the first time since 2013, we lowered the costs per vehicle
in production," said Andreas Tostmann, Volkswagen brand board
member for production and logistics.
Volkswagen's costs for its production plants are EUR10 billion a
year and it plans to save EUR2 billion in this area in the next
four years through measures such as reducing personnel and overhead
costs.
The Volkswagen brand, which makes vehicles such as the Golf and
Passat, is part of the broader Volkswagen group, which is in the
midst of an overhaul that includes slashing thousands of jobs
worldwide.
The car maker aims to increase productivity at its sites
globally by 30% by 2025, a plan announced in September last
year.
Additionally, the Volkswagen brand said that CO2 emissions at
its plants per vehicle produced will be reduced by 22% between 2015
and 2019. It aims to cut such emissions by 50% by 2025.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
September 26, 2019 06:14 ET (10:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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