By David Sachs

Volkswagen Group on Wednesday set higher revenue and profit-margin targets and said it will prioritize creating value over volume growth as part of a strategy shift.

The German car maker said it is guiding for 2027 sales growth of between 5% and 7% compared with this year's goal of between 307 billion and 321 billion euros ($335.2 billion-$350.5 billion). The company's 2030 target remains in line with the industry, according to a presentation Wednesday at its capital markets day meeting.

Volkswagen is aiming for a return on sales of between 8% and 10% by 2027 and, by 2030, a margin of between 9% and 11%. Those targets compare with a 2023 goal of between 7.5% and 8%. Volkswagen reported a margin of 8.1% in 2022.

Volkswagen also said it will now prioritize creating value over volume growth and give more autonomy to its brands, which will now be directly responsible or financial targets, strategy and brand identity.

The company will refine its strategy in China and North America, it said, which includes focusing on locally developed products in China for that market. It is aiming to expand its market share in North America, which includes a battery-cell plant factory planned in Canada, it said.


Write to David Sachs at david.sachs@wsj.com


(END) Dow Jones Newswires

06-21-23 0937ET