In an interview with German newspaper Bild final month, Volkswagen CEO Oliver Blume was painfully sincere in regards to the automaker’s delicate state of affairs. He blamed “decades-long structural issues” for the dearth of competitiveness, citing excessive labor prices as one of many foremost culprits. Huge layoffs, pay cuts, and even plant closures are looming to optimize the enterprise, however VW can also be trying to minimize prices in different areas.
Head of technical improvement, Kai Grünitz, spoke with Automotive Information Europe’s sister journal Automobilwoche about how VW intends to save cash. It is lowering the time it takes to develop a brand new mannequin to 30-36 months. The objective for brand spanking new automobiles that use an present platform is to finalize the product even sooner. If VW have been to stay to its earlier modus operandi by taking 4-5 years to place a brand new automotive available on the market, it could already be outdated by the point it goes on sale, based on Grünitz.
Dashing up improvement is facilitated by doing fewer real-world exams. VW constructed 40% fewer prototypes in 2024. By now, you are in all probability (and rightfully) involved that high quality has consequently taken successful, however Grünitz says that is not truly the case. The Wolfsburg-based automaker is doing extra bench and digital testing to compensate for a discount within the variety of bodily take a look at automobiles.
“We will now run your complete improvement chain with a digital prototype, shortening the product improvement course of and lowering prices with out sacrificing testing depth.”
Elsewhere, VW desires to keep away from cramming in additional capabilities the top buyer won’t even discover, not to mention use. Grünitz explains the precedence has been switched to helpful options that supply actual worth as an alternative of being there only for the sake of it. The intent is to take heed to what the shoppers really need reasonably than throwing issues on the wall and seeing what sticks.
VW has already axed plans to construct a €2 billion manufacturing unit that may allow a automotive to be inbuilt solely 10 hours. Even so, the brand new goal is to “radically minimize manufacturing instances” at present crops by putting in new and extra superior instruments. Working nearer with suppliers will even bolster effectivity.
Will these measures save hundreds of jobs and keep away from plant closures? It is too early to say, however VW staff have causes to be involved. Staff in any respect factories throughout Germany are occurring strike this week. Administration has identified that it wants to shut three factories and slash wages by 10% to spice up its competitiveness amid slower gross sales, partially attributable to China’s EV offensive.
