From Automotive News Europe:
BERLIN -- Volkswagen Group will axe 60 percent of its combustion-powered models by the end of the decade and sell fewer cars overall to concentrate on producing more profitable premium vehicles, finance chief Arno Antlitz told the Financial Times.
"The key target is not growth," Antlitz said. "We are (more focused) on quality and on margins, rather than on volume and market share."
VW sells about 10M cars per year, right up there with Toyota and GM. But most of their overall margins are low (5 to 7%), perhaps barely profitable in the US market.
The old strategy of volume discounting just is not viable going foreward.
Hence the strategy shift from volume and market share to quality and margins.
VW has about 100 different models and will drop about 60 of them in the next 8 years.
Many differing products involves procurement and operational complexities.
BERLIN -- Volkswagen Group will axe 60 percent of its combustion-powered models by the end of the decade and sell fewer cars overall to concentrate on producing more profitable premium vehicles, finance chief Arno Antlitz told the Financial Times.
"The key target is not growth," Antlitz said. "We are (more focused) on quality and on margins, rather than on volume and market share."
VW sells about 10M cars per year, right up there with Toyota and GM. But most of their overall margins are low (5 to 7%), perhaps barely profitable in the US market.
The old strategy of volume discounting just is not viable going foreward.
Hence the strategy shift from volume and market share to quality and margins.
VW has about 100 different models and will drop about 60 of them in the next 8 years.
Many differing products involves procurement and operational complexities.