Volkswagen Group claims to have sped progress towards sustainable and efficient production while reducing production costs.

Top executive Oliver Blume said: "From 2010 to the end of 2019, the environmental impact per produced vehicle is expected to drop by more than 37%."

To address offsetting trends, performance measures estimated at EUR1bn are also being made in production and productivity is increasing by 6%, he added.

Further efficiency measures are planned.

"In pursuing the target of halving the environmental impact of production by 2025, [the group] is certainly in a better position now than planned, having attained a 37% reduction," Blume said.

Five criteria are used to assess environment impact per vehicle – CO2 emissions, energy , water and solvent use, plus generated waste. In the past two years, CO2 emissions per vehicle were reduced by more than 10%.

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The group said it was also making good progress towards its target of improving manufacturing productivity by 30% over 2016 to 2025.

This year, productivity is expected to be 6% above 2018 and factories outside Germany have made the most significant contribution with improvement better than planned.

VW is spending an estimated EUR1bn on performance improvements this year before offsetting effects such as inflation and tariff increases.

Blume emphasised the importance of efficiency in group production.

"Inter-brand knowledge transfer and close cooperation are key factors of success in achieving further productivity increases and in reducing costs and investments."

He said it was becoming increasingly more important to replicate excellent examples and solutions and transfer them from one site to others.

"We have 122 group production sites worldwide. This production network offers tremendous potential for synergies. We continue to implement our production strategy measures systematically."

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