The manufacturer’s main target is the flagging VW brand, which for years has struggled to match performance at competitors like Stellantis, according to a person familiar with the plans. That’s left the company overly dependent on luxury labels Audi and Porsche for profits.
Bloated processes, high development spending and internal competition have long hampered the maker of the Golf and Tiguan. Blume’s plans, set to be unveiled at an investor meeting next week, follow a long line of CEOs seeking to make improvements, which often got watered down during talks with VW’s powerful labour representatives. Handelsblatt earlier reported on the profitability targets.
, according to a letter by VW brand head Thomas Schäfer posted on the company’s intranet. VW is planning similar steps for smaller electric cars as part of Seat, with VW factories producing a range of brands for billions of euros in savings over the next few years, Schäfer said.