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VW to Make 30 Percent More Cars by 2025 While Investing $1.7 Bn Less

Even if the debate is still raging about who won last year’s global car sales competition, there’s no questioning the fact Volkswagen as a group is at the top of the pack. But in the mid-term, being mildly ahead will no longer do for the Germans.
Volkswagen presents TRANSFORM.TOGETHER strategy 1 photo
Photo: Volkswagen
As part of the strategy for global domination, Volkswagen on Thursday said it plans on increasing production of cars wearing the VW badge by 30 percent by the year 2025, compared to 2018.

Financially, the company claims the new target would translate into an efficiency potential of €2.6 billion through the target year.

“Volkswagen is currently in the midfield compared with our most important competitors when it comes to production and labor costs as well as margins, making overdue investments more difficult,” said Andreas Tostmann, the one in charge with production at Volkswagen.

“That is why we are now introducing uniform structures at all factories along with uniform and comparable key performance indicators.”

To meet the new production target, Volkswagen plans a serious update for its production processes. That includes making factories faster and more efficient, investing in new resources and products and massive reductions in factory costs and investments by relying on standardization and reusable factory structures.

The standardization and other specific processes envisioned by the VW executives are likely to allow the company to cut investment by €1.5 billion ($1.7 billion) compared with today’s level.

Most definitely, the group’s modular electric drive matrix (MEB) will help with these plans. To be launched next year with the first car form the ID family, MEB will facilitate the production of a total of 27 models and 10 million cars by the time the Germans are done with it.

Being modular, it will be used across segments of the industry, sparing a lot of Euros from being spent in the creation of a new platform for each segment.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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