Volkswagen, disappointed by “receiving less than expected” in the Perte, examines “whether it should go ahead”

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Thomas Schafer, the CEO of the Volkswagen brand, has not yet decided what will happen to the plans for the giga factory in Sagunto (Valencia). In the first final resolution of the Electric and Connected Vehicle Perte (VEC), which awarded 877 million of the 3,975 available funds, the German consortium received 397 million, 230 more than originally planned.

“400 million is a significant amount,” the manager told the international press in a confidential product presentation.
“However, it is less than we expected and we have 10 days to decide whether to continue or not”.

At the event, which also served to take stock of his first 100 days at the helm of the brand, Schäfer wanted to highlight Volkswagen’s future direction as the crowning glory of the volume segment within the consortium, which is responsible for 80 % of the turnover. and that includes Seat, Cupra, Skoda and VW Commercial Vehicles.

“It’s time to look ahead and leave the suffering of diesel behind us”. To do this, it plans to focus on reducing the complexity of its range and focusing on models that well combine the “spirit” of each emblem. By 2026 they will have launched 10 new zero-emission models and their new SSP platform will already be the skeleton of the new models.

This will be used for the first time in the Trinity project, for which:
an investment of 460 million in a new assembly line in Wolfsburg (Germany), the headquarters of Volkswagen, the brand that will lead the project. The SSP will also serve other zero-emission premium models from Audi or Porsche from 2026.

Within these launches there is also an SUV based on the ID.3 – the compact will receive an aesthetic renewal in 2023 – or the two small models, a tourism and a crossover, which will be produced at the plants of Landaben (Navarra) and Martorell (Barcelona).

Schäfer was convinced that these models
may be below the threshold of 25,000 euros, “despite the rise in commodity prices and inflation”. The way to deal with these more difficult trading conditions is through ‘optimal platform distribution’.

“The price of batteries has become extremely expensive”pointed out to the manager one of the elements to focus on to address production efficiencies and keep costs down, which could be good news for Sagunto given the cost of getting them from another country.

The group has decided to turn its factories into multi-brand spaces that work with the same architecture and pursue operational synergies. “For example, it makes perfect sense that the ID.4 and the Skoda Enyaq are produced in the same factory. You get the biggest cost savings by investing once to use the same platform and maximize production.”

One of the goals of Schäfer, who describes himself as “the person in charge of accelerating the freighter that is Volkswagen”,
is to achieve an 8% margin on sales and 20% more efficiency among the brands heading into 2025, “an ambitious target,” he joked.

However, steps are being taken in that direction. Only with the exercise of “copying” (sharing) elements between the different brands within the Volume segment
“Saved more than 220 million euros”. The Volkswagen Group will publish financial figures for the third quarter next Friday.

in foreign markets,
VW to invest 7,000 million in the US, to “go from a niche brand to a major player.” In the American country, they expect that 60% of their turnover will be zero by 2030, thanks in part to the good reception that the ID electric van has had. fuss.

Finally, with regard to China, Schäfer pointed out that “its manufacturers should be taken seriously”, who play the price advantage, but that Volkswagen has other strengths in Europe, such as the dealer network or a historical legacy. “I don’t think the right path is that of limitations,” he concluded.

Source: La Verdad

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