VW Hikes Savings Target 18% for Commercial Truck Operations

Volkswagen Group, which formerly predicted €850 million in savings by integrating its MAN and Scania commercial truck units, now targets €1 billion in reductions.

Andreas Renschler, who heads VW’s truck group, tells reporters the two units are beginning to develop common transmissions, coordinate logistics and share manufacturing operations. Renschler figures that purchasing synergies have helped contribute €200 million in savings in the past two years.

Bloomberg News notes that the €1 billion revives a goal set in 2008 by former VW Chairman Ferdinand Piech. The company lowered the target to €850 million when it completed its acquisition of Scania in 2014.

Finding economies of scale is more difficult in the commercial truck market because of regional differences in styles, powertrains, features and capacities. Product lifecycles also are considerably longer than for passenger vehicles.