Subject: Re: "Productivity"

The RAV4 is not only America’s most popular vehicle, it’s the most popular vehicle in the world.

Management doesn't care about volume anymore. They are focused on escalating ATP and GP. As volume falls, because more and more people are priced out of a new car, they close more factories, and lay off more employees.

Management hubris.

In an interview with Financial Times, VW Group Chief Financial Officer, Dr. Arno Antlitz, explained that the company’s sales strategy will be changing drastically with the company moving away from large-volume models like the Golf and Tiguan and toward few but more premium models. Of course, this direction has become quite common with larger legacy automakers since premium cars have become more in demand lately. However, it leaves one to wonder if Volkswagen can pull it off. I’ve always said that Volkswagen thinks it’s more premium than it is, which is the exact reason why the Touareg failed in America – Volkswagen was charging premium prices for an SUV that had more hard plastic inside than your typical GM car.

According to Antlitz, the company wants to step up quality and margins as opposed to volume and market share.

https://www.topspeed.com/cars/...

Audi Is Moving Upmarket with Fancier, More Expensive Cars
Future models will come with "a significant increase in price."

https://www.motor1.com/news/75...

So, with VWs priced like Audis, and Audis priced like Bentleys, what is Ford thinking?

CEO Jim Farley Is Turning Ford Into The 'Porsche Of Off-Road' Vehicles
Ford’s CEO promises the automaker won’t make boring products as he says the German sports car maker is an inspiration for its off-road vehicles

Read More: https://www.jalopnik.com/ceo-j...

Porsche is, of course, known for exorbitant prices, and exceptionally fat margins.

Seems they are all listening to the same management consultant, who is telling them "how to make more money, while doing less".

Steve