VW chief aims to challenge Toyota on margins as well as technology

Automotive

Volkswagen aims to challenge its main rival Toyota not only in the area of technology but also on plant efficiency and thus on marginal returns, VW chairman Martin Winterkorn told German business weekly Wirtschaftswoche.

Wolfsburg-based Volkswagen is aiming at increasing efficiency by at least 10% a year, as well seeking to increase turnover by a similar figure, Winterkorn said. By 2010, the German carmaker is aiming at 8 million vehicles a year. New models, such as the new Golf should offer higher margins than the 8% achieved by current models. Winterkorn is not planning to cut jobs. “That danger would only exist if we stopped growing”’ he said.

According to the chairman, VW will grow through its new products, like the Tiguan and the Scirocco. According to Winterkorn, VW’s struggling Spanish subsidiary Seat is to remain part of the concern and will not be sold. VW plans to build the new small City car in Europe. It is to be presented as a prototype at the International Motor Show (IAA) beginning in Frankfurt on Thursday. Winterkorn said this might mean a plant in Eastern Europe.

The new model is a four-seater intended to replace the Fox with a sticker price of around €9,000 ($12,000). (c&m.com)

ADVERTISEMENT

Tender for Home Solar Panel, Battery Subsidies Announced Green Energy

Tender for Home Solar Panel, Battery Subsidies Announced

Gov't Keeps Rate on General-purpose Student Loans at 7.99% Government

Gov't Keeps Rate on General-purpose Student Loans at 7.99%

Wolf Theiss Advises Kyoto Group on HaaS Delivery to Kall Ing... Deals

Wolf Theiss Advises Kyoto Group on HaaS Delivery to Kall Ing...

Budapest Police Seize Nearly 155 kg of Cocaine in Drug Bust City

Budapest Police Seize Nearly 155 kg of Cocaine in Drug Bust

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.