The manufacturer German of cars Volkswagen plans to revamp its core brand to increase efficiency and profitability, according to an internal memo from brand chief Thomas Schaefer seen by Reuters on Wednesday.
“We see that our brand, despite all its strengths, still does not have a sufficiently solid economic base”, Schaefer wrote in the note.
“We have to create good and competitive returns in times of crisis and in a world of continuous volatility”he pointed.
The target for the main brand was a return on sales of 6.5%, compared to 3% achieved in the first quarter of this year, he added.
Schaefer blamed a difficult environment, including the risk of recession, geopolitical conflicts, unstable supply chains and soaring prices for raw materials and energy. “The pressure is increasing. The Volkswagen brand must act.” wrote.
In the note seen by Reuters, Schaefer said the details of the renewal would be finalized in the coming weeks and months.
He also said that he wanted to increase synergies between the brands with joint development and production, including the use of common platforms in some areas.
Source: Reuters
Source: Gestion
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