Article source: Economic and Commercial Counseling Office in Germany
Reuters Chinese version reported on December 6, Volkswagen will speed up an improvement in profit margins at its core VW brand earlier than previously planned, despite increase investment in research and development of electric vehicles, the company announced on Thursday.
VW brand plans to increase its profit margin to at least 6% by 2022, three years earlier than previously planned. The current profit margin is 4%.
The aim of the VW brand is to invest more than 11 billion euros ($12.5 billion US dollar) in electric vehicles, digitalization, autonomous driving, and mobility services by 2023, with the bulk earmarked for electric cars, the company said.
In order to afford the investment, Volkswagen said it aimed to implement more aggressive cost-cutting measures than previously planned and raised the productivity of its plants by about 30 percent by 2025.
The company did not give any details about job cuts but ruled out forced redundancies