Friday 21 February, 2020

Volkswagen will mit E-Mobilität und Digitalem Boden gutmachen

Veröffentlicht: 23 November 2016 Wednesday, 06:51  AM

Volkswagen will mit E-Mobilität und Digitalem Boden gutmachen

Bonn, Nov 22 ( - Volkswagen is once again looking for a connection to the world`s peak with digital mobility services and accelerated expansion of electric mobility. VW`s core brand manager, Herbert Diess, is aiming to arm the Group`s low-income main group for the change in the auto industry. The US market is also to be recaptured.

The industry is faced with a "fast and hard upheaval" and will change more than ever before, said Diess at the presentation of the company strategy "Transform 2025+" on Tuesday in Wolfsburg.

In its reorientation, Volkswagen relies on a digital platform, among other things. Up to 80 million users are expected to contribute an annual turnover of one billion euros to the company by 2025. The platform is to become a «digital ecosystem», which offers mobility options from parking to driving.

The strategy for the low-profit main market around the Golf and Passat segment offers considerable savings apart from a new orientation in the areas of electric mobility and digitalization. VW would have to become more competitive here, otherwise the financial situation in the coming years would be exacerbated, warned Diess.

Last week, the company presented a so-called "future pact" negotiated between the board of directors and the works council. This provides for the deletion of up to 30,000 jobs worldwide, of which 23,000 in Germany. According to Prime Minister Stephan Weil (SPD), up to 17,500 jobs could be affected by job cuts at the VW Group in the next four years. The exact scale is also dependent on how many older employees leave earlier, Weil said in a government declaration in the state parliament in Hanover.

"The loss of industrial workplaces on such a large scale is a very bitter pill, there is nothing to gloss over," said the Social Democrat. However, the country also focuses on the creation of new jobs. This involves up to 7500 new or converted sites - the balance will be about 10 000 digits. According to Weil, 105,000 people are currently employed at the six Lower Saxony locations of the VW Group.

This reaffirmed that the core brand should be the global market leader in e-mobility in 2025. "With Transform 2025+, we have created the greatest change in the history of our brand."

The strategy provides for three phases. After the reorganization of its core business, Volkswagen plans to become a leading and profitable volume manufacturer starting in 2020 with an operating sales margin of four percent. By 2025 at the latest, a sold number of one million electric cars per year will be targeted. The brand image in the US, but also in Latin America, is to be secured by significantly more SUV off-road vehicles. "The brand should become more accessible and more appealing, arrogance is a thing of the past."

The SUV range is to be more than doubled. At the same time Volkswagen wants to streamline its variants. "In the past year, we have already taken over 15,000 component variants from the program." The range of engines will also become clearer. VW wants to round off the range by a cheap "budget car".

In all major markets positive results are to be achieved by 2020. "In North America, we want to write a comeback story," explained Diess. In the US business, VW is planning an offensive. There, the carer faces difficult challenges because of the stress caused by the diesel scandal. "Volkswagen must develop from a niche supplier into a relevant and profitable volume producer in North America," said Diess.

The comeback is to introduce sedans and large SUV-SUVs. From 2021 the local production of electric vehicles will begin under the motto «Electrify America». The plant in Chattanooga (Tennessee) is also being considered, but a decision will only be taken in a few months. The exhaust gas scandal had begun in the USA and heavily loaded VW.

With stringent cost discipline, the US plants, as well as the locations in Latin America, are set to return to the black in 2020. In South America, a cost-cutting program has already begun, particularly in Argentina and Brazil. At the same time, a total of € 2.5 billion will be invested in new products.


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