Cost-cutting programme at Volkswagen brand bears first fruit

VOLKSWAGEN said on Thursday (Mar 14) that operating profit for its core mass-market brands increased by 80 per cent last year, in a sign that closer cooperation between them is bearing fruit.

The group including Volkswagen, Volkswagen Commercial Vehicles, Skoda and SeaT/CUPRA posted operating profit of 7.3 billion euros (S$10.6 billion) in 2023, mainly due to higher unit sales.

“Through close cooperation between our brands, we are working more efficiently, becoming more competitive and boosting our innovativeness for our customers worldwide,” said Volkswagen’s Thomas Schaefer, head of the core brands.

Related effects from the closer cooperation should bolster results this year, said the German carmaker, which also expects more sales due to a better raw materials and components supply.

On Wednesday, Volkswagen said the operating profit margin for the group’s core mass-market brands rose to 5.3 per cent last year from 3.6 per cent in 2022, with the company targeting 8 per cent. REUTERS