Volkswagen suggests launch edition of ID. EV may sell out before introduction in September; pre-booking opens 8 May
Volkswagen’s ID. electric vehicle, the first to be based on the MEB, will be presented at the IAA later this year, with pre-bookings for the launch edition opening on 8 May. “Given the interest in the ID. family shown by our dealers, I think it is possible that the launch edition will already have sold out before we unveil the ID. in September,” Board Member for Sales, Jürgen Stackmann, said.
Volkswagen expects to manufacture more than 10 million electric vehicles based on the MEB over the next 10 years. The plans involve more than 20 models.
2019 is key year for the brand; its electric vehicle offensive is set for launch, and the company plans significant efficiency increases.
The brand is rolling out an earnings improvement program aimed at achieving a sustained contribution of €5.9 billion (US$6.7 billion) from 2023. Measures include reducing complexity and optimizing material costs. The program will gradually start delivering results in the period from 2019 to 2022.
Furthermore, efficiencies in administration are to be leveraged by a stronger focus on process digitalization.
We will significantly step up the pace of our transformation so as to make Volkswagen fit for the electric and digital era. Volkswagen is to become more efficient and agile and a more attractive and modern employer, especially in administration. Initial constructive talks with the Works Council on the planned implementation of the digitalization roadmap in the administrative areas of the company have already taken place.— Ralf Brandstätter, Chief Operating Officer of the Volkswagen brand
Investments in future topics totaling €19 billion (US$21.5 billion) will be ramped up through 2023. That is €8 billion more than originally planned for the period 2019 - 2023.
The aim is to undertake these investments using the brand’s own resources and to mitigate the rising costs of more stringent CO2 and exhaust regulations. That requires a sustained improvement in earnings of €5.9 billion per year from 2023. To that end, the Volkswagen brand is reducing material costs and the number of variants. Furthermore, productivity at plants is to increase by 5% per year. Increases in earnings and margins in Sales are also planned.
Nonstaff overheads and personnel requirements in administration are to be cut by 15% each. The focus is increasingly moving towards the digital transformation. Implementation of a digitalization roadmap is designed to prepare employees for the digital world of work. Volkswagen will be investing €4.6 billion (US$5.2 billion) in IT systems to digitize administrative processes.
The brand is targeting an operating margin in the range of four to five percent for the current fiscal year. Despite the subdued economic outlook in key markets, further growth in sales revenue of up to five percent is expected. Deliveries by the brand are expected to be on a similar level to last year, with momentum becoming increasingly positive as the year progresses.