According to New Street Research analyst Pierre Ferragu, the Elon Musk-led company is at least a decade ahead of the other EV brands, especially tradional auto makers. Last year, the brand's operating margin fell to 3.8 percent, lagging peers such as Peugeot which delivered a margin of 8.4 percent.
Volkswagen Group held its Annual Media Conference earlier this week, where CEO Dr. Herbert Diess confirmed the company's MEB electric vehicle architecture will scale down to support city cars. Here too there's been inflation at play: the company had previously given itself a target of 15 million in the same time frame.
"We will significantly step up the pace of our transformation so as to make Volkswagen fit for the electric and digital era", VW brand COO Ralf Brandstaetter said.
In this context, VW has announced that automating routine tasks would mean cutting some 5,000 to 7,000 jobs over the next four years. It is estimated that 11,000 Volkswagen employees will be eligible for retirement in 2019.
There have been rumours that the company may want to sell some of the non-core brands it owns, like Ducati, Scania and MAN.
World Premier of new I.D. series From Left: I.D., I.D. Vizier and I.D. Buzz at the 88th Geneva International Motor Show in 2018 in Geneva. That is, finally, about to change. For the Audi E-Tron and the Porsche Taycan, VW's first two battery cars that are part of a 70-model onslaught until 2028, VW said it has received 20,000 reservations each-with Porsche boosting planned production because of high demand. Lips were sealed tight as to whether the model would be coming across the ocean, and if so, when.
Last year, Volkswagen revealed the scope of its commitment to electric powertrains, announcing the most expansive plan in the industry; one that would see it get in front of the pack in terms of sales in this emergent sector, with 50 new electric auto models planned. The largest of these batteries, which we believe to be a 111 kilowatt-hour (kWh) unit, is estimated to give the I.D. around 340 miles of driving range on a full charge.
The VW brand now employs about 185,000 people around the globe.