Finance chief swap-out hopes to aid struggling VW brand

09 September 2024 - 15:46 By Reuters
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The VW brand is falling behind on a €10bn (about R196.7bn) cost-cutting drive initiated in December which management says does not go far enough for it to hit its goal of a 6.5% operating margin by 2026.
The VW brand is falling behind on a €10bn (about R196.7bn) cost-cutting drive initiated in December which management says does not go far enough for it to hit its goal of a 6.5% operating margin by 2026.
Image: Jeremy Moeller/Getty Images

The finance chiefs at Volkswagen's Seat and VW brands are swapping roles as the auto group looks to inject fresh urgency into a cost-cutting drive at VW that has seen the brand contemplate unprecedented factory closures in Germany.

The company said on Monday that David Powels, CFO at Spanish-based subsidiary Seat, would change positions with VW CFO Patrik Andreas Mayer, confirming an earlier report by Manager Magazin.

Powels will be responsible, “under even more difficult conditions”, for designing a competitive cost base and improving synergies between the group's core brands, VW brand CEO Thomas Schaefer said in a statement.

These brands include Volkswagen Passenger Cars (VW), Skoda, Seat/Cupra and Volkswagen Commercial Vehicles.

Volkswagen said last week it was considering closing factories in Germany for the first time as it battles a shrinking European market and rising competition from China and elsewhere.

The VW brand is falling behind on a €10bn (R196.7bn) cost-cutting drive initiated in December which management says does not go far enough for it to hit its goal of a 6.5% operating margin by 2026.


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