It was a memorable day for Volkswagen Production – and, in strategic terms, the most important one for many years. The topic up for debate was nothing less than “a new era in Production for the Volkswagen Passenger Cars brand” and a “paradigm shift from a product-oriented company to a production- and process-oriented company”, said Dr. Andreas Tostmann, the Volkswagen Brand Board Member for Production, speaking at the Berlin Motorenwerk location. 500 managers from Volkswagen’s 17 vehicle manufacturing plants around the world had gathered here to discuss the new TRANSFORM.TOGETHER production strategy. This strategy targets a 30 percent increase in productivity worldwide by 2025 compared to 2018. The reason why this goal is so necessary and fundamental for the company’s success today was one of the main topics on this extraordinary Thursday.
“For a volume manufacturer like Volkswagen, production is by far the most important means of increasing profitability,” Tostmann explained in his opening speech.“There are two reasons for this. In 2017 the Volkswagen brand produced more than 6.3 million vehicles i.e. by far the largest share of the almost 11 million cars produced by the Group. Vehicle construction accounted for around 2/3 of the brand's total capital investments. It also accounts for around 1/3 of the workforce – and that’s only in Germany. At our VW sites abroad, the share of vehicle construction tends to be even higher. This is why one of the biggest efficiency levers for the brand is in the production division. An efficient production network makes a significant contribution to increasing the value of the company - a comparison with our competitors shows this.”
Concerning profitablity, Volkswagen has already made significant progress in the last two years – and production itself has made a major contribution At its German sites, productivity has been improved by an average 7,7%, the brand’s global return on sales turned up to 5%, exceeding all expectations.