VW Pushes for More Productivity Gains

Volkswagen AG’s profits are reviving this year after first-quarter. But the company’s core nameplate still must become “much more” productive just to equal its rivals, warns VW brand chief Herbert Diess.

He tells Germany’s Sueddeutsche Zeitung that “we need to catch up urgently,” adding that convincing employees of the threat in not doing so remains a major challenge.

Analysts say streamlining product development and manufacturing for the VW brand is key to the group’s long-term viability. VW has been struggling with cost-cutting reforms since shortly before its diesel emission cheating scandal surfaced in September 2015.