13.3.2019. Volkswagen wants to speed up after a solid fiscal year 2018, the Transformation. This year, the brand provides an important Soft, in order to strengthen competitiveness in a sustainable way. For this purpose, the Start-up of the electrical-Offensive, efficiency measures in production and additional productivity gains, progress, and margins of the dough.
At the same time, the brand is launching a program to improve earnings to result from 2023 to a sustainable contribution of 5.9 billion euros. Among other things, it’s about reducing complexity, and optimizing material costs. Proportionally, the program already had an impact in the years 2019 to 2022. In addition, more digitized processes, efficiencies to be achieved in the administration.
Ralf Brandstätter, Chief Operating Officer for the Volkswagen brand, said: “We have reached the” future Pact ” is much: But we still need to do significantly more in order to cope with the upcoming challenges in the period after 2020. We want to increase our transformation pace significantly in order to make Volkswagen fit for the electrical and digital age. Volkswagen is supposed to be more efficient, more agile and just be in the administration as an employer more attractive and modern. For the implementation of the planned digitization Roadmap in the management of it have already been in constructive discussions with the works Council.“
Volkswagen ID. (Photo: Volkswagen AG)
Key 2019: issues for the future in focus
The current year is a key year for the Transformation of the brand. Overall, investments in the future will be driven topics to 2023 to 19 billion euros. The provided 8 billion euros more than originally planned for the period 2019-2023.
The goal is to be able to these investments from its own resources make additional requirements, such as the rising cost of stricter CO2 – emission regulations to mitigate. To ensure a sustainable earnings improvement of EUR 5.9 billion per year from 2023 is necessary. Reduced to this purpose, the Volkswagen brand cost of material and variant diversity. In addition, the productivity is expected to rise in the works of five percent per year. To do this, earnings and margin increases should come in the sales.
“The measures from the earnings improvement program will allow our brand to have a competitive level of Return of six per cent in the year 2022. This improvement is the base, in order to Finance the necessary inputs for our Transformation, and our strategic slogan, in the e-age to meet,“ explained chief financial officer Dr. Arno Antlitz.
Property, plant and overhead costs and personnel requirements of the administration are to be reduced by 15 percent. The digital Transformation is increasingly in the focus. The implementation of a digitization Roadmap aimed the staff at the digital for the world of work. Volkswagen plans to invest 4.6 billion euros in IT systems to digitize the processes in the administration.
The company expects that by 2023, through the automation of routine work, for example, 5,000 to 7,000 jobs disappear. The field, by not be occupied at the age-related retirement of employees. Alone, the potential of the next three Birth cohorts for old-age part-time amounts to approximately 11,000 employees. A day along the demographic curve is possible. At the same time in the Technical development should be, where it comes to Software and electronics, architecture, around 2,000 new jobs will be created. For all measures, the following applies: In the case of Volkswagen, a guarantee of employment to at least 2025.
The second major Transformation of the brand to a stronger focus on E-mobility, Volkswagen is well on the way. The brand wants to produce in the next ten years, over 10 million E-cars on the MEB-based. The beginning of the ID., to be presented at the IAA. From the 8. May can customers a Launch Edition of the ID. pre-order it. “If I have the interest of our dealers at the ID.-To see my family, I think it is possible that we are sold out with the Launch Edition, before we have the ID. in September reveal,“ said sales Director Jürgen Stackmann.
Outlook 2019: profitable growth targeted
In the current financial year the brand is aiming for an operating margin of four to five percent. When turnover is expected, despite the gloomy economic Outlook in key markets, a further growth of up to five percent. The deliveries of the brand to reach a similar order of magnitude as in the past year, with a in the course of the year, increasing positive Momentum.
Volkswagen ID. BUGGY (photo: Volkswagen AG)
