VW details plan to hit 2008 profit goal

Washington DC July 13, 2005; The AIADA newsletter reported that Volkswagen has presented details of its plan to boost profit by 4 billion euros [$4.9 billion] by 2008 while simultaneously improving quality in VW vehicles, according to Reuters. Quoting an anonymous source, the story said this will be achieved through cost cuts and efficiency improvements totaling 10 billion euros.

The VW brand passenger car arm aim to contribute 7 billion euros to the effort, including 3 billion euros on materials, 1 billion on production, 500 million on overhead and 500 million on warranty costs, while improving its performance in sales and distribution by over 2 billion. Wolfgang Bernhard -- brought in this year to turn around the VW Brand Group, plans to halve warranty claims for VW brand cars that are up to 12 months old.