Volkswagen plans electric overdrive

On the back of strong figures in 2018, Volkswagen has announced 2019 will be the start of what it calls its ‘electric offensive,’ which includes the aim of
manufacturing over 10 million electric vehicles based on the MEB in the next decade.

It has also announced it will continue to pursue efficiency measures in production and make further progress in productivity and margins. Measures include reducing complexity and optimising material costs. Volkswagen expects this to start delivering results in the period from 2019 to 2022.

Furthermore, efficiencies in administration are to be leveraged by a stronger focus on process digitalisation.

Ralf Brandstätter, chief operating officer of the Volkswagen brand, said: ‘We have already achieved a great deal with the pact for the future: but there is still much more to do if we are to manage the challenges facing us beyond 2020 as well. We will significantly step up the pace of our transformation so as to make Volkswagen fit for the electric and digital era. Volkswagen is to become more efficient and agile and a more attractive and modern employer, especially in administration.’

Nonstaff overheads and personnel requirements in administration are to be cut by 15% each, with the company estimating that the automation of routine tasks will result in the loss of between 5,000 and 7,000 jobs by 2023.

That can be absorbed by not recruiting replacements for employees who leave the company for retirement reasons.

At the same time some 2,000 new jobs are to be created in technical development, which relates to electronics architecture and software.