Transformation VW LCV

Volkswagen Commercial Vehicles (LCV) is with more than €11bn revenues and 25,000 employees a significant brand within the Volkswagen Group. Key challenges included:

a) Revamping the business model to address issues such as CO2 penalties due to the absence of electric vans, excessive overhead costs, uncompetitive plant performance, and a lack of market presence in growth regions.

b) Transforming the leadership team and workforce to effectively manage the transformation process, encompassing extended responsibilities, such as the development of autonomous shuttles.

c) Implementing the plan effectively under the challenging conditions posed by the COVID-19 pandemic.

Key results:

• Developed transformation plan to grow revenues to €20+bn (market leader LCV Europe, iconic family vans, RoboTaxi) and to reduce workforce by more than 7,000 people. Gained approval by all stakeholders including unions and state of Lower Saxony.

• Negotiated strategic alliance with Ford - historic core of VW LCV (1t Cargo / „Bulli“) to be engineered by Ford and contract manufactured in Turkey (instead of Hanover)

• Negotiated and closed deal with Argo AI, leading tech company in self driving vehicle software

• Delivered EBIT improvement of more than €500m in 2020