Volkswagen Brand Restructuring on Track

   By Max Bernhard 
 

Volkswagen AG's (VOW.XE) namesake passenger car brand said Friday that its restructuring is on track, with productivity improvements in 2019 expected to exceed targets.

Productivity is expected to have improved by more than 7% in 2019, ahead of the Volkswagen brand's 5% target, it said. By the end of the year, the marque expects to have achieved 2.6 billion euros ($2.9 billion) in cost savings from its 2016 restructuring plan.

Chief Financial Officer Arno Antlitz said "consistent discipline with respect to costs and investments is having a positive impact." The brand backed its 2019 target of an operating return on sales of between 4% and 5% and operating cash flow significantly above EUR1 billion.

Next year, the brand plans to launch 34 new models, including 12 SUVs and eight electric or hybrid cars.

Write to Max Bernhard at [e-mail]; @mxbernhard

(END) Dow Jones Newswires

December 19, 2019 06:14 ET (11:14 GMT)

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