VW also wants to save on investments
On Friday, the Board of Management and Supervisory Board of Volkswagen discussed investment planning for the next five years. The Board of Management also informed the Supervisory Board about the status of the planned savings program for the core Volkswagen brand, a spokesperson explained after the meeting when asked. He did not give any details.
With the efficiency program, the brand aims to reduce costs by ten billion euros by 2026. The details of the program have been under negotiation with the Works Council since October. As an immediate measure, VW had already imposed a hiring freeze for the most important locations at the beginning of November.
The core of the planning round, which takes place every year in November, was the determination of investments and plant occupancy for the next five years. "As part of this planning process, the Management Board took a strategic look at all projects and associated budgets," said the spokesperson. "This ensures the necessary investment discipline." He did not provide details on the total planned investment volume.
CFO Arno Antlitz had previously announced that investments would reach a peak in 2024 and 2025. After that, expenditure on new models and plants is set to fall significantly. Antlitz had justified this by stating that the company currently still had to invest in both combustion engines and new electric models, but that this double burden would be eliminated with the imminent end of combustion engines.
VW had already presented the key points of the future plant layout at the end of September. According to this, the new factory for the future Trinity model previously planned in Wolfsburg will be abandoned and the model will instead be built in Zwickau. A new electric Golf is now being discussed for Wolfsburg instead, while Osnabrück has been awarded the contract for an electric Porsche.
VW is considering investing in electric vehicles for its future plans, aligning with their aim to phase out combustion engines. To save on investments, they have imposed a hiring freeze at their key locations.
Source: www.dpa.com
