Thu, 02 Feb 2023 Today's Paper

Volkswagen to make brands more distinct to boost efficiency

16 October 2017 12:00 am - 0     - {{hitsCtrl.values.hits}}

A A A

 

Reuters: Volkswagen will make its three mass-market brands more distinct to reduce overlaps and defuse tensions within the car-making group, its chief executive said.


The German company is striving to make savings and become more efficient to help fund a costly shift to electric vehicles in the wake of its diesel emissions scandal.


CEO Matthias Mueller said the automaker’s executive board had set out a new focus for its mass-market VW, Skoda and Seat brands based on 14 customer groups in its core European market.
“The key challenge is (to achieve) a perfect market coverage with clear territories for the brands,” he told a strategy meeting of about 400 managers in Wolfsburg.


“We must now be able to better use the synergies that our unique alliance of brands offer than we have done to date.”


The move may help to smooth relations between the brands.


VW sources told Reuters last week that managers and unions were seeking to curb competition from lower-cost stablemate Skoda, move some of its production to Germany and make the Czech brand pay more for shared technology.


That sparked at backlash at Skoda. Concerned about the possibility of losing work to Germany, the Czech brand’s main union threatened to cut back on overtime work. Czech Prime Minister Bohuslav Sobotka also demanded talks on the issue with Skoda’s leadership.


The positioning of the brands is “an emotional theme that recently made waves,” Mueller said.
“Of course, it is an extreme challenge sometimes to steer this tanker and to balance the (different) interests,” he added.


In a next step, Volkswagen will pursue greater differentiation between its premium brands and expand the strategy to other regions, Mueller said, without being more specific.


Separately, Mueller said the group expected to make major savings in development costs at premium brands Audi and Porsche through their new shared PPE production platform for electric cars.


“On balance we expect 30 percent less workload compared with the current MLB and MSB platforms operated separately by Audi and Porsche,” the CEO said, without being more specific.


Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

Health System in the emergency room

Sandya Kumari from Kotahena has been experiencing chest pains since 2015 and

Canada’s targeted sanctioning of Gota and Mahinda

History was made last week when two former executive presidents of Sri Lanka

SC judgement on Easter attack: Court rules negligence stood in the way of avoiding most heinous crime

“On the ill-fated day of 21st of April 2019, this island home was awoken ru

Lasantha was a Fearless Editor who Spoke Truth to Power

Friends,Family members, colleagues, schoolmates and admirers of Lasantha Wick