Volkswagen to upgrade plants for increased efficiency and profits

(Credit: Volkswagen)

Volkswagen plans to upgrade its plants in Germany for increased efficiency and profits. The plant upgrades will help the company achieve its goals for its ACCELERATE forward | Road to 6.5. The German automaker’s Group Board of Management informed the Supervisory Board about its vehicle allocation plans to upgrade its plants through 2028. 

“Our industry faces complex challenges as it undergoes a transformation that is being conducted under difficult business conditions,” said VW CEO Thomas Schäfer.

“It is all the more important that we prepare our individual plants and the Volkswagen production network in Germany for the future. Within the context of our performance program, this newly approved vehicle allocation plan will make a substantial contribution to a strong, competitive VW brand,” Schäfer stated.

All the allocation plans the Board of Management laid out to the Supervisory Board applied to Volkswagen’s production network based in Germany. The German automaker decided an additional plant in Wolfsburg, Warmenau, was no longer necessary. Instead, VW decided new electric vehicles based on the company’s scalable systems platform (SSP) architecture will be produced in existing and modernized structures at its main plant.

Volkswagen plans to produce a second electric vehicle in its Wolfsburg plant, which will be manufactured beside the VW ID.3. In 2026, the European automaker will start making an all-electric SUV for the high-volume A segment. The company will also manufacture the all-electric Golf built on the SSP platform at the Wolfsburg plant. Meanwhile, the VW Trinity vehicle will be made in the company’s Zwickau plant instead of the factory at Wolfsburg as initially planned.

Volkswagen’s plant upgrades will increase productivity, an essential step to rolling out the company’s ACCELERATE forward | Road to 6.5 performance program. The ACCELERATE forward | Road to 6.5 program is designed to improve efficiency and increase profits at lower costs. With it, Volkswagen aims to achieve a return on sales of 6.5%. Through increased return on sales, VW hopes to safeguard investments in future technologies and jobs. It also aims to improve earnings by about €10 billion in 2026. 

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Volkswagen to upgrade plants for increased efficiency and profits
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