Volkswagen to limit model variants to save money

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Tough times at Volkswagen mean that the company has not only had to stretch its existing resources, but seek new ways to settle its financial woes in the wake of its global diesel scandal.

Recently, Bloomberg reported that the Volkswagen Group has identified that it could save up to 1.9 billion euros (RM8.5 billion) purely by limiting the number of variants and trim options it has for its Volkswagen-branded models.

Bernd Osterloh, a chief labour representative at Volkswagen told journalists at a recent briefing event held at the company’s headquarters in Wolfsburg that, “we from the works council have long flagged the huge range of model variants and different components.”

“That (range of variants) brings enormous complexity and adds to costs, for example, for logistics. We can take out costs there on a large scale and don’t have to talk about job cuts,” continued Osterloh.

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It was also reported that senior executives within the company would have their bonuses reduced, in an attempt to cover the estimated 8.7 billion euros (RM39 billion) in damages faced by the Volkswagen Group for its diesel scandal. It has been reported that these measures will help the Group collectively save up to five billion euros (RM22.5 billion).

Volkswagen currently faces a multi-pronged diesel dilemma that spans over more than 11 million vehicles from around the globe. Various emissions-manipulating devices and softwares have been uncovered in vehicles equipped with 1.2, 1.6 and 2.0 litre EA189 diesel four-pot engines. More recently, the 3.0 litre V6 TDI has also been flagged for emissions offences in the US.

Inevitably, the diesel scandal has sparked a drop in customer demand for Volkswagen vehicles worldwide. In response, Volkswagen’s Osterloh has said that the manufacturer will be reducing its production output to avoid oversupplying a market that has limited demand for its vehicles.

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Chris Aaron

With an equal passion for fast cars and everyday workhorses, Chris Aaron maintains a passion for European makes, Formula 1, playing the electric guitar and spending endless hours on the PlayStation - first-person shooters and the Gran Turismo franchise are his favourites. He also finds it strange to have written this in the third person.

 

Comments

  • Serve you right, Cheater on Nov 30, 2015 at 3:56 pm

    Just go out of business.. sell all your assets (if there is any left lol) then donate them to the environmental protection agencies, maybe that will save you some dignity.

    Like or Dislike: Thumb up 9 Thumb down 10
  • Observer on Nov 30, 2015 at 4:12 pm

    How does 5 millions euros translate to RM22.5 billions?

    Like or Dislike: Thumb up 7 Thumb down 2
  • Shut Down VGM on Nov 30, 2015 at 4:31 pm

    VW AG should shut down VGM also because from Malaysia alone, there is a possibility of a multibillion ringgit law suit because DSG owners are fed up being sold a lemon.

    They are fed up that they were lied to for so many years, 6 over years. And even until now, VGM still lies telling mineral oil has sorted the DSG breaking down.

    Many owners still using mineral oil but the cars are still breaking down and juddering.

    Anyway VW AG seems not sincere. Please also shut down your multi billion Euro dollar Bugatti. It is a waste of money

    Like or Dislike: Thumb up 7 Thumb down 10
    • Aida Sawyer on Dec 01, 2015 at 4:29 pm

      My 2011 jetta after replaced with the new mechatronic and the mineral oil. My car has no longer suffered with DSG issue.

      Like or Dislike: Thumb up 3 Thumb down 0
    • Dont be sour grape on Dec 01, 2015 at 4:31 pm

      I’m completely happy with my VW. please don’t be a sourgrape. your call on the DSG is irrelevant. it makes no sense you are talking about the past. if you want, why not ask japanese car maker to close shop since takata airbag kills? or ferrari crash and will not survive and ask ferrari to shut down? shutting down is not a solution my friend.. I pity your kids and family whom are not at your expectation and wouldn’t be a surprise you will shut them down too. why not giving concrete ideas on improving instead of condemning the past? if you disagree, then i have to shut you down due to complete arse.

      Like or Dislike: Thumb up 5 Thumb down 0
    • SHut down on Dec 02, 2015 at 12:23 pm

      I can make an example for you.
      Let said, you pay for all your kids expenses which more than 400k. He sick and consulted to doctor, but the next day he is not getting recover. Then, you claimed that the doctor is a liar. lol

      Like or Dislike: Thumb up 0 Thumb down 0
  • But still can get bonus…

    Like or Dislike: Thumb up 5 Thumb down 0
  • Golf MK7 Owner on Nov 30, 2015 at 5:43 pm

    There’s a mistake with the money saved from the bonus cut. I think it should be 5 billion euros and not million.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Kidding on Nov 30, 2015 at 8:14 pm

    It seems Malaysia’s economic downturn is much worse than anticipated. Folks, it is 4,500 ringgit to 1 euro now.

    Like or Dislike: Thumb up 2 Thumb down 0
 

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