Berlin — Volkswagen’s original brand is “no longer competitive,” the company’s brand chief warned Monday, owing to high costs and low productivity.
The company has been working to improve the financial performance its globally popular namesake car brand, a company spokesperson said.
The process is especially important as the VW Group, the parent company, shifts to production of more electric cars.
Volkswagen Group owns several brands including Porsche, Audi and its original brand Volkswagen, founded in 1937.
VW Group hopes to increase the VW brand’s return on sales from 3.6% last year to 6.5% by 2026, according to an investor presentation.
The company had previously said it planned to take advantage of the “demographic curve” to reduce its workforce.
In Monday’s meeting, human resources board member Gunnar Kilian said this would be achieved through agreements on partial or early retirement. »