Volkswagen aims to increase its U.S. market share, targeting a goal to double its current 4% share by 2030, according to the company’s Chief Financial Officer, Arno Antlitz. This marks a reduction from the previously set target of 10%, highlighting the challenges the automaker faces in its key markets, particularly with potential import tariffs under the newly inaugurated U.S. President Donald Trump.
Speaking at the World Economic Forum in Davos, Antlitz outlined that the company’s efforts to cut costs in Germany were still in the early stages, particularly with the need to speed up production in its factories. He stressed that these cost-cutting initiatives, agreed upon with unions last month, would not succeed without improving efficiency in manufacturing.
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Antlitz added that Volkswagen’s struggles reflected broader challenges faced by both Germany and Europe’s industrial sectors. These challenges include securing access to key materials such as batteries and chips, as well as improving productivity and return on investment. He emphasized the necessity of reducing fixed costs before the company and the region could achieve profitable growth. “It’s a pattern: what’s right for Volkswagen might be right for Germany and also right for Europe,” he stated.
In the U.S., Antlitz emphasized the need for further investments to achieve the company’s market share goals, noting that Volkswagen must become more localized to expand its footprint. The automaker has already committed approximately $20 billion to North America, including investments in its Chattanooga plant, a joint venture with EV maker Rivian, and its Scout subsidiary. While Antlitz did not provide specifics, he highlighted that research and development could play a significant role in Volkswagen’s strategy to boost its presence in the U.S.
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To address consumer concerns about electric vehicles (EVs), Volkswagen also plans to introduce range extenders, small combustion engines that charge EV batteries, into more of its models. The technology, already planned for some Scout models, is gaining traction in markets such as China and could help the automaker appeal to customers hesitant to fully transition to electric vehicles.
Source: Reuters