VW Says Lean Production Will Save €2.6 Billion

Volkswagen AG estimates that its VW brand will save €2.6 billion ($3 billion) between now and the end of 2025 by implementing leaner production methods.

Over that period, the VW unit expects to increase its global productivity by 30%, says production chief Andreas Tostmann. The initiative is part of the brand’s “Transform.Together” program, whose other goals include reducing rework, standardizing the customer order process and looking for ways to save energy and recycle materials.

Tostmann says the VW brand believes it also can lower capital spending by €1.5 billion ($1.8 billion) by standardizing more operations and by reusing existing resources and structures.