Volkswagen Group focuses its strategic alignment and launches performance programs at all brands to strengthen profitability and cash flow

Volkswagen Group is focusing its strategic alignment. At its Capital Markets Day, the Group presented leadership principles that emphasize customer orientation, entrepreneurship and team spirit. The Group assigns responsibility for their return targets to the brands. To achieve these goals, strengthen profitability and cash flows in particular as well as reduce capital intensity , each brand is launching its own performance program for the first time. This involves a paradigm shift: Instead of pure volume growth, sustainable value creation will be prioritized in the future based on the “value over volume” principle. To enable them to fully exploit the economies of scale offered by the technology platforms, the Group is realigning its architecture, battery, software and mobility services. Regionally, the Group is focusing its investments on the world’s most attractive profit pools. In this context, the strategies for the important growth markets of China and North America were also refined. Based on the brands’ focused approach and performance programs, the Group is increasing its strategic return on sales target to 9 to 11 percent by 2030.

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