According to Reuters, VW will reduce the number of models it offers and it will raise the profit margin on all brands, including Skoda and Seat.

Audi and Porsche are the two premium brands of the group that boosted sales, with Audi registering a 51% increase in profit and 22% for Porsche respectively.

Volkswagen volume brands, on the other hand, saw a decrease of 8%.

The CEO is looking to move manufacturing of all volume vehicles in the same facility to save on production cost.

"We have historically a lot of waste in the system we can take out", Schaefer added.

Also, by switching to one platform that can fit more vehicles, the company can maximize manufacturing efficiency.

Standardizing the battery chemistry as much as possible is another strategy that will make production more efficient and more cost effective, as well.

"If you have 30-40 different battery cell and pack formats, it's unmanageable. The focus is a clear standard across the brands, and full scale", VW CEO said.