Volkswagen Brand Aims To Improve Earnings By Around €10B In 2026

Volkswagen AG VWAGY expects its passenger car brand to boost earnings by €10 billion by 2026.

The goal is to sustainably achieve a return on sales of 6.5% to safeguard investments in future technologies and jobs.

In a meeting held at the Wolfsburg headquarters, Volkswagen CEO Thomas Schäfer outlined important milestones of the "ACCELERATE FORWARD | Road to 6.5" program.

The brand aims to achieve the targeted savings without reducing collectively agreed wages or shedding jobs.

The proposals included streamlining and accelerating administrative processes, increasing efficiency in development and production, streamlining the model range, reducing the number of equipment variants, and improving product quality.

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Volkswagen is setting up a Project Management Office (PMO) to develop and manage the program and the measures are expected to be operational by October 2023.

"The program is the number one priority for the entire Board of Management. We must build new strength for the Volkswagen brand and position it robustly for future growth, which is why we are now getting an enormous concerted effort off the ground," said CEO Schäfer.

Related: Volkswagen Supervisory Board To Meet On Tuesday To Discuss Cost Saving Plan: Report

Price Action: VWAGY shares are trading higher by 1.4% at $17.39 on the last check Wednesday.