Daily Management Review

To Boost Efficiency, Volkswagen To Make Brands More Distinct


10/12/2017




To Boost Efficiency, Volkswagen To Make Brands More Distinct
With the aim of defusing prevailing tensions within the carmaking group and to reduce overlaps, German auto giant Volkswagen will make its three mass-market brands more distinct, said the chief executive of the company on Thursday.
 
In the wake of its diesel emissions scandal, the car maker is in serious attempts to help fund a costly shift to electric vehicles and hence this German company is striving to make savings and become more efficient.
 
Based on 14 customer groups in its core European market, a new focus for its mass-market VW, Skoda and Seat brands have been set out as a new focus by the automaker’s executive board of the company, said the CEO of the company Matthias Mueller.
 
“The key challenge is (to achieve) a perfect market coverage with clear territories for the brands,” he told a strategy meeting of about 400 managers in Wolfsburg.
 
“We must now be able to better use the synergies that our unique alliance of brands offer than we have done to date.”
 
The relations between the brands may be helped to be smoothened by the move.
 
Managers and unions were seeking to make the Czech brand pay more for shared technology, to move some of its production to Germany and to curb competition from lower-cost stablemate Skoda, reported the media last week quoting several sources from within the company.
 
But a backlash at Skoda was sparked off by that move by the managers. The Czech brand’s main union threatened to cut back on overtime work as it was concerned about the possibility of losing work to Germany. Talks on the issue with Skoda’s leadership was also demanded by Czech Prime Minister Bohuslav Sobotka.
 
The positioning of the brands is “an emotional theme that recently made waves,” Mueller said.
 
“Of course, it is an extreme challenge sometimes to steer this tanker and to balance the (different) interests,” he added.
 
Mueller said, without being more specific that Volkswagen will expand the strategy to other regions and will also pursue greater differentiation between its premium brands as a part of its next step.
 
Making use of their new shared PPE production platform for electric cars, the group expected to make major savings in development costs at premium brands Audi and Porsche, Mueller said separately.
 
“On balance we expect 30 percent less workload” compared with the current MLB and MSB platforms operated separately by Audi and Porsche, the CEO said, without being more specific.
 
(Souorce:www.reuters.com) 






Science & Technology

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

What trends will be affecting the health sector in the coming years?

Deloitte identifies main cyber threats for power industry

Zenuity To Take Self Driving Car Road Test In Sweden With Permission

Researchers: Half of Facebook users is fake

Amazon’s Ring gets in a privacy scandal

Facebook Is Creating A Stablecoin For Its WhatsApp Users

IBM offers to use the first quantum computer

Passport Numbers Of 5 Million Customers Hacked: Concedes Marriott

World Politics

World & Politics

AirHelp expects up to 33 th of cancellations and flight delays per day all over the world in 2019

Far-right and Catalonia: New elections in Spain

Trump is losing rating because of shutdown

Hanoi, Vietnam Chosen As Place For 2nd Summit Between Trump And Kim Jong-Un

US, China to hold new negotiations in Beijing

Human Rights Not To Be Dissociated From Stability, Macron Tells Sisi

Brexit Hijack Is Not The Parliament’s Right

Macedonia ignites political crisis in Greece