TapTechNews, June 9th. In response to the report that Volkswagen will achieve a 20% reduction in personnel costs in the next three years, Volkswagen officials have recently responded.
According to the China Business Network report, Volkswagen China told reporters that KI10 is the Efficiency Program proposed by the headquarters, which is to achieve a 20% increase in efficiency in the next three years based on 2023, and 20% refers to indirect labor costs and is not equal to layoffs. This plan involves Volkswagen China.
TapTechNews noticed that a previously exposed internal document of the Volkswagen Group showed that in order to improve efficiency and optimize costs, the Volkswagen Group has set up a performance project named KI10 for all its subsidiaries. The project has set a clear goal: compared to 2023, a 20% reduction in costs will be achieved in the next three years, including fixed costs and personnel costs.
The document shows that the intense market environment in China has put additional pressure on Volkswagen's financial performance. If we want to remain competitive, we must invest in the future now. In order to be able to make these investments, the profitability of the Chinese business is the most important. Since last year, our Chinese team has been working hard to implement the performance plan locally.
Regarding the content of the circulated document, the Volkswagen Group told reporters that in order to accelerate the electric transformation, strengthen competition and reduce costs and increase efficiency, the Volkswagen Group has formulated a plan of achieving a 20% increase in efficiency in the next three years based on 2023, and said that it hopes to prevent further misunderstandings from spreading.
Volkswagen China's delivery volume increased by 8% to 693,600 units in the first quarter of 2024, among which the pure electric models increased by 91% to 41,000 units. In the next three years, the Volkswagen Group plans to introduce more than 40 new models to the Chinese market - half of which are new energy vehicles.