Wolfsburg, Germany - Volkswagen aims to challenge its main rival Toyota not only in the area of technology but also on plant efficiency and thus on marginal returns, VW chairman Martin Winterkorn has told the German business weekly Wirtschaftswoche. Wolfsburg-based VW is aiming at increasing efficiency by at least 10 per cent a year, as well seeking to increase turnover by a similar figure, Winterkorn said.
By 2010, the German carmaker is aiming at 8 million vehicles a year.
For example, the time taken to build a Golf should be cut by at least 20 per cent from the current 35 hours.
New models, such as the new Golf should offer higher margins than the 8 per cent achieved by current models.
Winterkorn is not planning to cut jobs. "That danger would only exist if we stopped growing," he said.
According to the chairman, VW will grow through its new products, like the Tiguan, a planned small car and the Scirocco.
According to Winterkorn, VW's struggling Spanish subsidiary Seat is to remain part of the concern and will not be sold.
VW plans to build the new small City car in Europe. It is to be presented as a prototype at the International Motor Show (IAA) starting in Frankfurt on Thursday.
Winterkorn said this might mean a plant in Eastern Europe.
The new model is a four-seater intended to replace the Fox and planned to cost around 9,000 euros (12,000 dollars).
