Volkswagen is giving its brands like Audi and Skoda greater independence to make Europe’s biggest carmaker more nimble in the EV transition and improve returns.
The German company is targeting to raise group returns to 9% to 11% by the end of the decade, it said Wednesday, adding it’s pursuing a strategy of “value over volume.”
Volkswagen will give brands greater autonomy and focus on speeding up product development at its Cariad software unit, Chief Executive Officer Oliver Blume told reporters ahead of an investor meeting at Germany’s famous Hockenheimring racing circuit. The group targets annual sales growth of 5% to 7% on average until 2027.
The German auto major is working through software issues that have delayed key new models and needs to address sliding market share in China, where costly turnaround efforts are yet to take effect. The plodding delivery on ambitious goals for its shift away from the combustion engine is capping VW’s share price. Despite the partial listing of Porsche AG last year, which was billed as a driver of shareholder value, VW is currently trading at around €72 billion ($78.6 billion), some €30 billion less than the maker of the 911 sports car.
