Over the next eight years, VW will cut 60% of its ICE production.
Margins and build quality will become priorities.
Volkswagen was among the first automakers to make a massive commitment to electrifying its lineup. Its plans involved cutting back on internal combustion engine (ICE) development and now, they’ve outlined the process over the next eight years.
Between now and 2030, Volkswagen will drop 60% of its ICE (petrol and diesel) vehicles but not simply as a move to reduce its carbon footprint.
“The key target is not growth,” VW finance chief Arno Antlitz told the FT as reported by Automotive News. “We are (more focused) on quality and on margins, rather than on volume and market share.”
Volkswagen has been the #1 volume automaker on and off for many years and it seems clear now that this will no longer be a priority. Profits and revenue have long been attributed to volume, but VW will turn away from big numbers and focus heavily on building quality and increasing margins per unit.
Volkswagen plans on 50% of all its new sales being EVs by 2030. By 2025, they expect that at least 20% will be EVs however that number could rise given their new approach.
