Product launch, software, cash flow
VW prepares for “challenging months”
8/31/2023, 6:14 p.m
Persistent supply bottlenecks continue to affect Europe’s largest automobile manufacturer. Most recently, Volkswagen also has to adjust its annual forecast. At a meeting in Barcelona, CEO Oliver Blume swears his employees in for difficult times.
In view of the economic downturn, Volkswagen boss Oliver Blume is calling on management to make joint efforts to keep the car company on course. “The coming months will be challenging,” said the CEO at a management conference in Barcelona a year after taking office. “The focus is on product launches, the software, our performance programs, cash flow work and numerous activities in the brands and regions,” he said, according to excerpts from his speech manuscript.
Due to the ongoing bottlenecks in the supply chains, Volkswagen had recently formulated its forecast for 2023 a little more cautiously. CFO Arno Antlitz said at the end of July when presenting the quarterly figures that the group had taken steps to achieve the lower end of the promised range of between six and eight billion euros in terms of cash inflow (net cash flow). In terms of deliveries, management is now assuming a range of between nine and 9.5 million vehicles for the year as a whole, instead of the 9.5 million units previously expected.
A year ago, Blume replaced Herbert Diess at the top of the group, who was replaced because of problems with software development. Since then, the 55-year-old has been leading Europe’s largest car company in a personal union with the sports car manufacturer Porsche AG. He wants to increase Volkswagen’s earning power and has given all brands their own return targets.
“We manage our brands with clear, measurable goals,” said Blume in front of the managers, adding: “Entrepreneurship in all organizations is our central claim. Everyone makes a contribution to the joint success of the group.” According to the company, several hundred top managers took part in the conference in Barcelona.