VW brand targets productivity gains through 2020
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Volkswagen has set itsef fixed targets for raising productivity at its troubled core division through 2020 by pushing cost savings, stemming overseas losses and launching more higher-margin cars.
Volkswagen’s namesake VW brand is targeting an operating margin at the upper end of a 2.5 to 3.5 percent range this year, with revenue expected to exceed 2016 levels by around 10 percent, the carmaker said on Friday.
Europe’s biggest carmaker said it expects its largest division to continue to improve financially over the course of the year after a strong first quarter, and will increase guidance on key targets if necessary.
Questions & Answers
Q.What is the primary goal Volkswagen has set for its core division through 2020?
What is the primary goal Volkswagen has set for its core division through 2020?
Volkswagen aims to significantly increase productivity at its core division by 2020. This will be achieved through implementing cost savings, halting losses in overseas markets, and introducing more vehicles with higher profit margins.
Q.What operating margin is the VW brand targeting for the current year?
What operating margin is the VW brand targeting for the current year?
The VW brand is aiming for an operating margin at the higher end of the 2.5 to 3.5 percent range this year. This target reflects their expectation for financial improvement over the course of the year.
Q.How much is Volkswagen expecting its revenue to increase this year compared to 2016?
How much is Volkswagen expecting its revenue to increase this year compared to 2016?
Volkswagen anticipates that its revenue will surpass 2016 levels by approximately 10 percent this year. This increase is a key part of their financial targets for the current period.
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