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Markets
VW CEO Pits World’s Largest Car Plant Against New Tesla Site
By
Christoph Rauwald
December 15, 2020, 1:39 PM EST Updated on December 15, 2020, 2:29 PM EST
1:51
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VOW
VOLKSWAGEN AG
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+7.20+4.40%
TSLA
TESLA INC
633.25
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-6.58-1.03%
Volkswagen AG Chief Executive Officer Herbert Diess told top managers the German manufacturer will pit its largest plant against the Tesla Inc. factory that’s under construction near Berlin, according to people familiar with the matter.
Diess said during an internal video conference the storied site in Wolfsburg, Germany, will be upgraded with the latest electric-vehicle technology and software operations, said the people, who asked not to be identified as the meeting wasn’t public. It is the biggest carmaking facility worldwide, having built more than 800,000 cars annually.
Herbert Diess
Photographer: Krisztian Bocsi/Bloomberg
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The CEO’s goal is for the Wolfsburg plant to match Elon Musk’s target of reducing production time per car to 10 hours, the people said. That would be less than half the estimated time it takes to assemble a VW Golf or Tiguan, Wolfsburg’s main products. Diess also reiterated that VW must substantially reduce fixed costs in order to remain competitive as the fallout from the Covid-19 pandemic showed that some rivals are leaner.
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A VW spokesman declined to comment.
Diess, 62, spoke a day after receiving a fresh vote of confidence for his strategy to make the German industrial giant more nimble. VW’s supervisory board also managed to defuse a conflict over management appointments with a range of agreements on cost savings and a decision to keep the Ducati and Lamborghini brands.
Read more: Volkswagen Soars After Board Backs CEO, Defusing Conflict
Diess said during Tuesday’s meeting of top executives that VW plans to create a management board position for information technology. The company is reviewing potential candidates and plans to make a decision next year.
The CEO said that while VW has navigated the Covid-19 crisis relatively well so far, its costs are still too high and earnings at some rivals have proven more resilient. VW announced a plan on Monday to lower fixed costs 5% by 2023.
https://www.bloomberg.com/news/arti...s-largest-car-plant-against-new-tesla-factory
VW CEO Pits World’s Largest Car Plant Against New Tesla Site
By
Christoph Rauwald
December 15, 2020, 1:39 PM EST Updated on December 15, 2020, 2:29 PM EST
-
Wolfsburg site has made more than 800,000 vehicles a year -
Diess also plans new IT position for management board
1:51
SHARE THIS ARTICLE
Share
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Post
In this article
VOW
VOLKSWAGEN AG
170.90
EUR
+7.20+4.40%
TSLA
TESLA INC
633.25
USD
-6.58-1.03%
Volkswagen AG Chief Executive Officer Herbert Diess told top managers the German manufacturer will pit its largest plant against the Tesla Inc. factory that’s under construction near Berlin, according to people familiar with the matter.
Diess said during an internal video conference the storied site in Wolfsburg, Germany, will be upgraded with the latest electric-vehicle technology and software operations, said the people, who asked not to be identified as the meeting wasn’t public. It is the biggest carmaking facility worldwide, having built more than 800,000 cars annually.
Herbert Diess
Photographer: Krisztian Bocsi/Bloomberg
What's moving markets
Start your day with the 5 Things newsletter.
Sign Up
By submitting my information, I agree to the Privacy Policy and Terms of Service and to receive offers and promotions from Bloomberg.
The CEO’s goal is for the Wolfsburg plant to match Elon Musk’s target of reducing production time per car to 10 hours, the people said. That would be less than half the estimated time it takes to assemble a VW Golf or Tiguan, Wolfsburg’s main products. Diess also reiterated that VW must substantially reduce fixed costs in order to remain competitive as the fallout from the Covid-19 pandemic showed that some rivals are leaner.
ADVERTISING
A VW spokesman declined to comment.
Diess, 62, spoke a day after receiving a fresh vote of confidence for his strategy to make the German industrial giant more nimble. VW’s supervisory board also managed to defuse a conflict over management appointments with a range of agreements on cost savings and a decision to keep the Ducati and Lamborghini brands.
Read more: Volkswagen Soars After Board Backs CEO, Defusing Conflict
Diess said during Tuesday’s meeting of top executives that VW plans to create a management board position for information technology. The company is reviewing potential candidates and plans to make a decision next year.
The CEO said that while VW has navigated the Covid-19 crisis relatively well so far, its costs are still too high and earnings at some rivals have proven more resilient. VW announced a plan on Monday to lower fixed costs 5% by 2023.
https://www.bloomberg.com/news/arti...s-largest-car-plant-against-new-tesla-factory
