Volkswagen cracks the efficiency whip, says its German plants need to match overseas factories

Volkswagen cracks the efficiency whip, says its German plants need to match overseas factories

Winter is coming. Volkswagen is cracking the efficiency whip on its domestic plants, which need to boost efficiency to match overseas factories, production chief Andreas Tostmann was quoted as saying, reported by Reuters.

The German giant is targeting two billion euros worth of savings by 2023. “The pace of improvement is better abroad. In Germany, despite all the successes we’ve achieved, we have to do better,” Tostmann told trade journal Automobilwoche.

He’s seeking to implement the savings in the production of VW brand cars through a bundle of measures on top of automation, including a leaner logistics operation. “The result is that we need 15% less space, 60% fewer logistics vehicles and are able to move 20% more product,” Tostmann said in the interview.

Volkswagen cracks the efficiency whip, says its German plants need to match overseas factories

This remark comes as German carmakers announced thousands of job cuts in recent weeks. It’s to address an expected 5% drop in global auto sales this year, with declines likely to spill into 2020. Investment in electric cars is usually the cited reason. VW brand Audi said last month that it would cut up to 9,500 jobs until 2025.

“In times of upheaval, we are making Audi more agile and more efficient. This will increase productivity and sustainably strengthen the competitiveness of our German plants,” Audi CEO Bram Schot said last month. The six billion euros generated from the move “will flow into future projects such as electrification and digitalisation,” Audi said.

Mercedes-Benz maker Daimler and big German auto suppliers Continental, Bosch and Osram have also recently announced staff and cost cuts.

Last month, Volkswagen’s board approved a €60 billion (RM275.7 billion) investment into hybridisation, electric mobility and digitalisation over the next five years. The group also plans to introduce 75 all-electric models across its range of brands by 2029, along with 60 hybrids.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • JOACHIM on Dec 09, 2019 at 3:59 pm

    Germans? Lazy? Wat is das? Something something about emulating the Germans? Hahahahaha!

    Like or Dislike: Thumb up 15 Thumb down 11
  • Nabiil on Dec 09, 2019 at 4:19 pm

    Volkswagen domestic gotta match DRB Vw Pekan factory for sure … jalan 2 syif 24×7.

    Like or Dislike: Thumb up 6 Thumb down 1
    • Celup King on Dec 09, 2019 at 10:15 pm

      VW Germany needs to send their people come to DRB Pekan and learn from DRB how to efficiently make cars. These Germans all are lazy, drink beer 8x, and sleep all day until their bosses tak boleh tahan and now has to crack the whip.

      Like or Dislike: Thumb up 5 Thumb down 0
      • torque on Dec 10, 2019 at 1:00 pm

        VW Germany needs to send their people come to their previous P1 suitor, Geely Tg Malim and learn from Geely how to efficiently make cars.

        Like or Dislike: Thumb up 3 Thumb down 0
  • SodomDanMee on Dec 10, 2019 at 7:41 pm

    Despite “being lazy” they still manage to overtake Toyota to be World No 1. Imagine if they are hard working?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Duh, get a life on Dec 10, 2019 at 11:52 pm

    You are are just commenting/trolling for the sake or it and without to senses.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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