The German automobile concern Volkswagen has decided to accelerate its restructuring and is planning to bring at least 20 new electric vehicle models onto the road by 2025.
Volkswagen is the latest manufacturer to announce "accelerating" previously approved restructuring plans. However, the automaker is not talking about laying off workers, as some other companies are doing.
Instead, VW plans to make significant changes to the powertrain configuration for the European market.
So far, VW's plans can only be found in a press release, but only general information is provided there. In the document, the company explained that the low-demand engine / transmission combination will be downsized in the next model year. In addition, it noted that the reduction should have "a corresponding positive impact on the complexity of production and supply chain."
The implication is that fewer transmission options will lead to fewer models, which simplifies the process. VW also announced that the lineup will be upgraded.
“We need to accelerate the pace of our transformation and become more efficient and flexible,” said Ralf Brandstater, VW's chief operating officer. - We must be aware of further significant improvements. What we have achieved is not enough yet."
What is the ultimate goal for VW in this step? The company has a bold vision to offer an average of 20 electric vehicle models by 2025, and this will attract significant technological investment.
In fact, VW's plan requires investments of over $ 12.5 billion (€ 11 billion) in e-mobility technologies, self-driving and autonomous services. More than 10.2 billion dollars (9 billion euros) from this will be directed exclusively to electrification, so the company wants to spend a lot of money in the near future.
The withdrawal of low-end models and transmissions will help that, although the statement makes no mention of job cuts or layoffs. The release says that "administrative costs will be even lower."
