Turns out, this is key in ensuring a more healthy business.
The head of the VW brand has told a German newspaper that VW needs to boost the productivity at its plants in order to catch up with rivals.
“There’s no avoiding it, the plants have to become much more productive in the coming years because we are not making enough money with our cars at the moment,” said Herbert Diess to the German newspaper tne Sueddeutsche Zeitung on Thursday.
These comments come in the wake of VW releasing its first quarter results which showed that its first-quarter operating profit at its largest division have surged to $948.9 million (869 million euros) from 73 million a year earlier.
According to investors, turnaround for the VW brand, which since long has been saddled with high R&D and fixed costs, is key to turning the German giant into a more attractive business.
“We need to catch up urgently,” said Diess highlighting the fact that it is important to get this message across.