VW Turns To Design To Sharpen Model Lineup As EV Sales Struggle

(Bloomberg) -- Volkswagen AG is adding improved design to a string of changes aimed at enticing more buyers as sales of electric models in China flag and competition intensifies. 

Europe’s biggest carmaker will strengthen the hand of its designers, who will work more closely with brand chief executive officers, VW said Sunday on the eve of the Munich car show. The goal is to better differentiate the company’s stable of ten brands and boost demand for its upcoming electric-car offering.

“Our refined design principles aim for higher design quality,” VW CEO Oliver Blume, who also heads sports-car maker Porsche AG, said in a statement. 

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VW is busy implementing improvements aimed at turning around a slide in sales in China, where the company’s EVs have fallen flat amid strong local competitors like BYD Co. The struggles follow Porsche, Audi and Volkswagen’s namesake models facing years of delays due to software hiccups. 

In July, the manufacturer announced a plan to jointly develop EVs with China’s Xpeng Inc. alongside Audi deepening ties with long-term China partner SAIC Motor Corp Ltd. VW’s EV sales in the country, its most important market, fell during the first half of the year while overall deliveries jumped 20%.

The company is also seeking to squeeze higher returns from its mass-market brands, which have long trailed competitors like Stellantis NV. 

VW said the focus on design will center on developing already-known models, lynchpin EV projects and the carmaker’s so-called icons to sharpen the differences between the brands.

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