Volkswagen Group's Big Sellers Will Have Even More In Common

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There will also be even more parallels between VWs, Seats, and Skodas.

The Volkswagen Group's head of volume brands recently stated that VW, Seat, and Skoda models would become more similar.

Thomas Schaefer sat down for an interview with Bloomberg. He revealed that the leading volume brands would share even more parts in the future to boost efficiency and profitability across the more affordable vehicles in its portfolio. However, the various cars will still rely on unique designs to set them apart.

This will be less of a problem for US customers, as neither Seat nor Skoda vehicles are sold in the States. Skoda was going to cross the pond in 2017, but those plans were put on hold following the Dieselgate scandal.

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"In the past, we wasted too much time being preoccupied with each other," said Schaefer. "The competition is outside, it's not within the company."

According to Schaefer, the volume brands are the core of the company. They currently account for 80% of global sales, and VW is aiming for a 20% efficiency gain. One example is the production of the VW Passat and the Skoda Superb moving to Slovakia to reduce overlaps. These two cars share almost everything except exterior design.

"The VW Group must become more competitive in the face of rivals ranging from Tesla to incumbent manufacturers like Stellantis," said Schaefer.

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The Volkswagen Group has always relied on its volume models to keep the company afloat. Here in the USA, models like the Jetta and Tiguan sell the best. The company's high-end brands like Audi and Porsche pad the income, but the primary source of income remains humble models like the VW Jetta GLI.

There's also more good news for SUV and crossover fans. According to Schaefer, VW will add more popular crossover and SUV models to its mass-market range to stay competitive. This might mean we could finally access exciting models that have never been sold locally.

Speaking about the ongoing semiconductor chip shortage, Schaefer is positive. "The prospects for the second half of the year are good, but overall, the situation remains volatile," he said.

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Source Credits: Bloomberg

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