Description

Volkswagen Group is restructuring to expand into electric cars, autonomous technologies, and new mobility services. A key challenge involves non-performing assets. The Volkswagen brand alone contributes to over 50% revenue while the operating profit contribution sits at 18%. The low margin (2%) on the major brand (Volkswagen) is coupled with the non-performing SEAT brand. This caused the company to spin off its components operations and phase out non-performing models. This study explores VW’s transformation (2015–2025) highlighting model phaseout and new line-up; impacts on segment mix, platforms, and brands; new technologies and collaborations; and competitive landscape. Key conclusions and recommendations are included.