Volkswagen AG has plans to kick off one of the biggest technology overhauls in almost 20 years. The move will come when Volkswagen’s premium brand Audi plans to revamp the A3 compact car next year. The Audi A3 will be one of the first of more than 40 miles that will use standardized components.

Volkswagen will than share those parts across the VW, Skoda and Seat brand. The company hopes to lower cost by more than $6.5 billion a year.

The technology is aimed for use in as many as 3.5 million compact and mid-sized cars annually. The move will help Volkswagen get closer to its goal of becoming the world’s biggest and most profitable group by 2018.

During the process, the German automaker hopes to lower production cost by 20% and assembly line time by 30%.

- By: Omar Rana

Source: Automotive News