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VW aims for 6.5% ROS as it cuts Arteon and shifts focus to volume

Volkswagen has set out a new strategy to focus on more volume products and boost its return on sales, which will result in the end of production for the Arteon.

The Fastback and Sportback model succeeded the VW CC, offering a higher level of specification and refinement than the Passat with which it shared a platform.

Volkswagen intends to achieve a 6.5% return on sales by 2026, under a performance programme called “Accelerate Forward | Road to 6.5”.

Thomas Schäfer, VW chief executive, said: “The program is the number one priority for the entire Board of Management.

“We must build new strength for the Volkswagen brand and position it robustly for future growth, which is why we are now getting an enormous concerted effort off the ground.

“We need to achieve a sustainable return on sales of 6.5% in the Volkswagen brand.

“Achieving this in 2026 is very ambitious, but feasible if we pool our efforts. This will enable us to safeguard jobs, finance our future from our own resources and continue to invest in new vehicles and technologies, in the modernization of our plants and in staff training.”

Among the changes will be more emphasis on cross-collaboaration between VW Group brands.

Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Seat/Cupra and Skoda already work closely together.Future production within the volume brand group will be geared even more systematically to multi-brand plants and vehicle platforms.

Volkswagen intends to focus more on volume models, meaning lower-volume models like the Arteon will be discontinued. Schäfer added: “We will focus on a small number of – though genuine – Volkswagen core models. This will reduce complexity and deliver higher profits.”

The brand has not confirmed when the Arteon will be removed from sale. VW is currently gearing up for the launch of the ID7, an upmarket electric saloon that will occupy the same segment as the Arteon.

Volvo announced, last week, that it was ending sales of the S90 saloon as part of a wider strategy to focus on electric car production.

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