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The employee magazine
of the Volkswagen brand

Strategy

Realignment makes progress

A thorough briefing on the Volkswagen brand’s situation was given to journalists and analysts by the Management Board at the beginning of the month. Here we summarize the key topics.

Around a hundred journalists and analysts from all over the world came to the press session at the Brand Tower in Wolfsburg.

Financial results

The brand got off to a better start this year than in 2015 and 2016. Sales revenue increased to €19 billion in the first quarter. This earned the company an operating result of €869 million. “Our achievements in the first quarter show that we are on the right track. That gives us a tailwind for the coming months,” said Brand CEO Herbert Diess. However, this will not make 2017 a surefire success. “It is now crucial that we resolutely stay the course and continue to carry out our tasks.”

The Pact for the Future

For the current and the coming year, one of the brand’s goals is to increase productivity by 7.5 percent at every German site. The key measures include more efficient start-ups, better plant capacity utilization resulting in reduced working hours, a reduction of indirect activities with no value creation, and a significant reduction in rework by means of improved processes. This program will be gradually applied to all production sites worldwide.

The model offensive

In this year alone, production will begin on more than ten new models, with five of these being genuine new products without predecessors. For Europe, the Arteon and the Tiguan Allspace have already been introduced. The new Polo will follow in June, then the T-Roc and Touareg in the second half of the year. The aim of the product campaign is to stabilize market share, restore the brand’s good image, and regain customers trust in the brand.

Regionalization

The substantial restructuring programs are starting to bear fruit: In the first quarter, above- average growth was recorded in North and South America as well as in Russia, and market share was gained.

The modification

In Europe, more than half of all vehicles affected have already received the necessary software update. In Germany, the figure is almost three- quarters. This means more than 2.6 million vehicles have been updated. In Europe, all Volkswagen brand vehicles should be modified by the end of the year. In the rest of the world, the modification campaigns will be completed as soon as possible.

Agile organization

After introducing the model line organization, the regions assumed full responsibility for their markets at the beginning of the year. The positive effects of this autonomy are already tangible: The regions have faster decision-making processes and are more responsive to their customers. Current vehicle projects are progressing more efficiently. The technology and design for the next generation of the Golf, for example, have been completed two months earlier than planned.

Electric offensive

By 2025, Volkswagen aims to be global leader in electric mobility. The first member of the I.D. family will be made in Zwickau and launched in 2020. The technical concept and design for the two most important vehicles will be determined this year.

Press comments


» What Herbert Diess and Arno Antlitz reported is more than respectable. «

FAZ, Germany

» The stronger the VW brand is, the better equipped it is to take on challenges. «

Wolfsburger Nachrichten, Germany

» Volkswagen wants to go head to head with fast- growing electric carmaker Tesla. «

Reuters, International

» The core brand is working its way up. «

Handelsblatt, Germany