Hyperdrive
VW Vows to Drive Efficiencies After Disappointing Returns
- Volkswagen brand profitability sags to 3.4% on high costs
- Carmaker seeks to implement savings program within weeks
The production line of Volkswagen AG VW ID.3 and Cupra Born electric sedans in Zwickau, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Volkswagen AG plans to redouble cost savings following disappointing third-quarter margins, with wilting demand in Europe and China adding urgency to efforts to slim down bloated structures.
Europe’s biggest carmaker reported a return on sales of 6.2% during the quarter, which compares with a long-term goal of over 10% across the group. High costs in its volume brand group weighed on the result, and VW said Thursday it’ll implement a planned performance program within weeks.