Volkswagen to Streamline Car Development
Economy / Finance

Volkswagen to Streamline Car Development

Volkswagen Group is implementing a significant shift in its vehicle development strategy, aiming for greater standardization across its brands. Newly appointed Group Development Chief, Werner Tietz, told business magazine Capital that the technical complexity of vehicles within the group has become “very complex” in recent years.

The core objective, according to Tietz, is to streamline this complexity and eliminate bespoke solutions. He stated his role is focused on preventing individualized development paths and is attributing the previous lack of cohesive development to the autonomous decisions made within individual brands, including Audi, Porsche, Skoda and Seat/Cupra. Tietz indicated that a tendency to “add something here, adjust something there” across brands has hindered progress.

The Volkswagen Group has long pursued a strategy of utilizing standardized components to achieve economies of scale through high production volumes. The principle involves deploying identical drivetrains, chassis and software systems across various brands and models, differing primarily in design. However, Tietz acknowledges that the group has, until now, been unable to fully realize the potential of this approach.

Tietz, previously the Development Board Member for the Volkswagen subsidiary Seat/Cupra, assumed his new position on July 1st, succeeding Michael Steiner, who has been appointed Vice President at Porsche’s sports car division. Reporting directly to Group CEO Oliver Blume, Tietz now holds a key position within Volkswagen’s extended leadership team.