Volkswagen has struggled to raise profitability at the VW brand for years. That was ambitious in itself, given that it made fewer than 50,000 battery-only vehicles previous year.
Frankfurt am Main (AFP) - German automaker Volkswagen said it would eliminate up to 7,000 jobs by 2023 as it seeks to accelerate its transition to electric vehicles, although the cuts should be achieved via retirement offers. Net profit for the year rose 6 per cent to 12.2 billion euros.
The company said this will allow it to attain its objective of selling 22 million vehicles powered by electricity and built on its new MEB platform within a decade. Diess also added that they will not be following other companies who are building hybrid vehicles as going the fully-electric route will be the most efficient way for them cut their Carbon dioxide emissions. Tesla's approach "is right, ' rather than building platforms for both electric and combustion engine cars as some traditional automakers have done, VW Chief Executive Officer Herbert Diess told analysts Tuesday".
The activity cuts declared Wednesday please best of a current rebuilding program cutting 21,000 positions worldwide and focusing on 3.0 billion euros for each time of investment funds by 2020.
Diess, who also heads the VW brand, has been axing slow-selling models and auto variants to reduce complexity.
For this year, the VW nameplate targets revenue growth of as much as 5% and an operating return on sales between 4% and 5%. It will boost investment in future technology to 19 billion euros through 2023, an increase of 8 billion euros.
Volkswagen states that first adopters of the I.D. will receive special, launch-edition cars, but has not specified how these will stand out from subsequent models. Order books for electric ID hatchback open on May 8 and sales chief Juergen Stackmann said feedback from dealers is so strong that the model might be sold out before its official presentation in September.