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Posts Tagged ‘vw cost cutting’

After Management Shake-Up, New VW Brand Boss Lays Out His Plans

Steady as she goes, says former BMW exec Herbert Diess.

by on Jul.10, 2015

Former BMW exec Herbert Diess took over as VW brand boss on July 1st.

After a bruising internal fight for control of the company, Volkswagen management is putting on a show of solidarity, hoping to calm internal jitters and, it would seem, skeptical analysts and investors.

The once-powerful Chairman Ferdinand Piech was pushed to resign in April in a dispute with his likely successor, CEO Martin Winterkorn. In turn, the chief executive is putting in place a major realignment that will effectively divide VW AG into a series of near-autonomous holding companies.

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The biggest will be run by Herbert Diess whom Winterkorn personally poached from rival BMW. In a Q&A published on the company’s internal website, Winterkorn and Diess outlined their plans for the future.

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Amidst Management Turmoil, VW Delivers Strong Earnings

German maker takes a sharp knife to costs.

by on Apr.29, 2015

VW scored a strong hit with the launch of its latest-generation Golf family.

While its boardroom may be racked with turmoil amidst the ouster of its long-time chairman, Volkswagen AG managed to salve investors’ concerns a bit with news that its first-quarter earnings rose 19%, to $3.23 billion.

The maker says it was able to cut costs “in the low triple-digit millions” during the January-to-March period, addressing a problem that had begun to worry analysts – and raise concerns within its boardroom. The maker also benefited from the nascent recovery of the European market which is just emerging from its worst downturn in decades.

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The numbers reported by the 12-brand Volkswagen Group came in ahead of what industry analysts had forecast and, with the maker forecasting continued growth ahead, it could bode well for the post-Piech era.

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VW May Kill Off the Beetle

Cost cutting program threatens maker’s slow-selling product lines.

by on Mar.10, 2015

Despite adding variants like the Convertible, sales of the latest Beetle have been sluggish.

It may serve as the icon of the Volkswagen brand, but barely three years after launching an all-new version of the Beetle, the little car may be an endangered species, one of several VW products in the crosshairs as the German maker races to slash spending by about €5 billion, or $5.4 billion, by 2017.

Another model likely to vanish is the three-door version of the Polo subcompact, according to various reports out of Germany. Other slow-sellers, such as the Scirocco might also be targeted.

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VW isn’t reining things in entirely. The maker is investing heavily in its utility vehicle line-up, with a midsize model set to be built at its plant in Chattanooga, Tennessee, and a new version of the Tiguan to go into its Puebla, Mexico factory. Expanding those facilities will cost the German maker nearly $2 billion.

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