volkswagen Reduces Delivery-Targets for 2023
Volkswagen Group said this past June that it needed to save 10 billion Euros, or about $15 billion CAD. The company's announced plan was aimed at increasing the overall profitability of its core brand, Volkswagen.
At the same time, the company's competitors seemed to be gaining ground. This has forced the German auto giant to make some tough decisions. Volkswagen ID.5 Photo: Volkswagen Volkswagen points at ongoing logistical delas, which persist even as the supply of certain important parts, such as electronic chips improves. The company now plans to raise prices and cut costs in order to improve its financial situation.Volkswagen still rests on a very solid foundation, but electrification and the company’s desire to stay ahead of Tesla are proving costly. It will have to navigate more cautiously.
Meanwhile, in the European market, Renault posted a record margin in the first half of 2023. It also returned to profit for the period, after registering a significant loss over the same period last year. The French company was helped by higher prices and the launch of new models.
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