Volkswagen core brand sees rise in 2021 deliveries, earnings

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A Volkswagen logo is pictured in a production line at the Volkswagen plant in Wolfsburg

(Reuters) - Deliveries and earnings at Volkswagen's core brand will rise year on year in 2021 as its new strategy starts to bear fruit, it said on Wednesday.

The brand will deliver more than 450,000 electric cars this year, more than double the number of previous year, it said.

This month, the world's second-largest carmaker unveiled its 'Accelerate' strategy for the brand, saying it expected fully electric vehicles to account for more than 70% of total European vehicle sales by 2030, compared with a previous target of 35%.

The Volkswagen brand aims to invest 16 billion euros ($19 billion) in electrification and digitalisation by 2025.

To help finance the investment, it aims to reduce fixed costs by 5% by 2023, freeze headcount at January 2021 levels, boost productivity at its plants by 5% a year and reduce raw material costs by 7%.

The new strategy would generate hundreds of millions of euros in revenue in the coming years, it said.

(Reporting by Bartosz Dabrowski in Gdansk; Editing by Tom Sims and Edmund Blair)