Volkswagen has released details of a wide-reaching plan to reduce costs and improve profitability, with a focus on streamlining its model portfolio.
The plans, confirmed by chief operating officer Ralf Brandstätter at the firm's annual conference, will result in a significant reduction of the number of model variants.
“Next year, we will be discontinuing 25% of engine and gearbox variants across Europe,” Brandstätter said.
There will also be a “more intelligent” streamlining of equipment packages in cars, with a “comprehensive reduction in complexity” across the Volkswagen brand. Further targets include an average increase in plant productivity of 30% by 2025 and an optimisation of material costs. The company has also reduced its workforce by 5600 people, while a further 9300 have signed early retirement contracts.
Volkswagen’s operating profit is down 6% in 2018 to €2.3 bilion (£2.05bn), with the blame shared between the delivery disruption caused by the new WLTP testing regime, the “lack of enthusiasm for diesel” in Europe and changes in the political framework including Brexit and the trade war between the US and China.
Join the debate
Jimbbobw1977
So in other words were going
This cutting can be seen in new VW’s that are being released as it seems VW’s once famous interior quality is dropping in recent reviews released. Carwow have a good one of the Audi A7 with its wobbly head light control panel.
WallMeerkat
Jimbbobw1977 wrote:
Exactly. I read it as decontenting, under-engineering and a downgrade in build quality if production lines are rushed.
For example, Rover enthusiasts (yes they exist, the brand has been dead for nearly 15 years, but they did make some good cars in their time) insist that the last range of cars - 25/45/75 were better before the 'Project Drive' costcutting.
Interiorwise - I noticed when the Arteon - VW's Flagship - was reviewed, the interior picture, if you replaced the clock with a hazard light button, and blanked the full length vent, you'd be hard pressed to tell the interior from a Skoda Octavia!
xxxx
Well that's it then
An A7 had a wobby head light control, the shame!!!
typos1 - Just can’t respect opinion
WallMeerkat
xxxx wrote:
To be fair a big expensive luxury car, especially one that is a press special, these kind of things just should not be an issue! If it occured on an A1 they might get the benefit of the doubt, but the A7 is a £45k+ car.
If it was on a French car people would be scoffing it as being flimsy.
Wobbly interior controls never inspire confidence, I'm sure the Mercedes W123 never had wobbly buttons.
xxxx
Mercedes have never made a car with a problem that major!
Maybe they're scrap that particular A7 having such a big defect like that, especially one that can't be repaired!!
typos1 - Just can’t respect opinion
catnip
Its quite amusing watching
Its quite amusing watching motoring journalists squirm as they try not to say too much about the reduction in interior trim quality in recent models such as the T-Roc, Arteon, A1 etc: One I read recently was justifying the hard plastics lower down in the Arteon, saying that you wouldn't want softer materials anyway in places where feet could scuff..... Yet other manufacturers are still criticised for the amount of harder plastics they feature, even in their cheaper models. You can't have it both ways guys.
Bob Cat Brian
'lack of enthusiasm for diesel'
And what caused that?!
carjimmy
Oh dear, more cheap hard plastics on the way then!
Oh dear, that sounds like the introduction of cheap hard plastics will be continuing then.
I can't remember where I read it, but I'm sure I saw something about the VW Group having Grouped their Brands internally to help streamlining processes or whatever it was. Anyway, if I remember correctly I think the Grouping was as follows:
Super Premium: - Porsche, Lamborghini, Bentley... etc
Premium: - Audi and Volkswagen
Volume: - Seat and Skoda
So apparently the VW Group are classing Volkswagen as 'Premium' vehicles in their range, yet the first vehicle launched after I saw that was the T-Roc, which has nasty, cheap hard plastics which I think every review I've read, video I've seen people have all said about the quality.
Hmm, so apparently, making Volkswagen 'Premium' means using cheap materials and quality taking a nosedive. As before I saw this Grouping, the new Polo was launched which has better quality plastics than the T-Roc.
So the next car Volkswagen Car to be launched is the Golf MK8 (I believe). As a happy owner of a Golf MK7, I do hope that they don't go and mess up the MK8 with an interior that takes a nosedive in quality with cheap hard plastics.
I understand that technology will take a 'leap' forward, but don't forget about quality guys!
Add your comment