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VW brand aims for $3 billion in savings on 'leaner' production

29 Sep,2018

  

HAMBURG -- Volkswagen Group's VW brand aims to increase its efficiency and sees potential savings in"The plants must become faster, leaner and more efficient," production manager Andreas Tostmann said on Thursday.Tostmann said processes would be streamlined to cut the amount of money that is spent per car in production.The brand targets a 30 percent increase in productivity worldwide by 2025 compared to 2018.VW also plans to reduce investments by 1.5 billion euros with measures such as reusing existing machinery and standardizing production, he said.

Herbert Diess, CEO of both VW Group and the VW brand, earlier this year revealed plans to increase worldwide productivity by 30 percent by 2025. In this time frame, Diess plans to lift margins to 6 percent from 5 percent.

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