VW Says Restructuring Benefits Are 2-3 Years Away

Volkswagen AG CEO Matthias Mueller tells reporters the massive corporate restructuring he has launched is 2-3 years away from generating significant results.

Mueller says the company is working on about 60 programs designed to overhaul VW’s autocratic culture, cut costs, streamline product development and coax its 12 car and truck brands to cooperate more with each other. He says such improvements are critical to the company’s viability and are independent of the effect of VW’s diesel emission crisis.

Separately, Mueller says VW is reviewing its procurement strategy. The company aims to avoid repeating last week’s disruptions at six of its factories in Germany over a payment dispute with two units of Prevent DEV GmbH.

VW may adopt more multiple sourcing for some components, even if doing so raises the cost per unit, according to Mueller.