Volkswagen Overhauls Product Strategy On EVs, Profit Centers

Volkswagen said Friday that its supervisory board and CEO Oliver Blume have agreed to an overhaul of its product strategy that includes “accelerating the electrification of its plants and focusing its activities on the most attractive profit pools.”

Photo Insert: VW needs to assign vehicles to sustain jobs at existing German factories.

VW said it will announce details of its new software and EV production plans at its annual media conference on March 14.

Reuters reported that one item on the agenda for Blume and the board was a decision on whether to build a new, highly-automated EV factory near its Wolfsburg, Germany head office to assemble an electric sedan code-named Trinity.

Former CEO Herbert Diess championed the Trinity plant as a response to Tesla’s Berlin Gigafactory. With Diess gone, Blume and his team put the Trinity investment under review.

VW needs to assign vehicles to sustain jobs at existing German factories. Earlier this week, VW previewed a shortfall in cash flow – another good reason to focus on the most profitable opportunities.

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