Volkswagen: Digital instead of diesel

Wolfsburg, 16th June 2016

This appointment was eagerly awaited: where will the new Volkswagen Captain Michael Müller draw the powerful ship of the group in the future? Now, Müller has publicly announced the strategy named "Together strategy 2025". The new magic words are "digital" and "Electric".

Class instead of mass

But in turn: fixed now says that the VW Group definitely goodbye to winter grain from the objectives of the former heads of the Board of Directors. He wanted to make Volkswagen the largest car company in the world with the highest global vehicle sales. Also speaking now of the "biggest process of change in the history of the group". Müller asks to learn to tackle deficits and to establish an open, value-oriented corporate culture as a reference to the autocratic ruling winter grain, from the mistakes of the "diesel issue". Müller would also be leading this time but in sustainable mobility.

Fewer models, more electric cars

The individual strategies of the Group brands will follow in the next few months, Volkswagen wants to present concrete measures and financial targets until the end of 2016. First corner pillar of corporate restructuring is the transformation of the automotive core business. So, the individual brands should be delineated sharper. One wants to improve models and engines with views of the "most attractive and fastest-growing market segments". In plain language: what is not running, flies out. Sense, because in the VW Group 340 different models exist according to your own specification. An emphasis is placed on electric mobility, a subject that was rather half-hearted operated under Winterkorn. Overall, more than 30 pure electric cars on the market will be in the next ten years. Volkswagen forecast a paragraph of two to three million so-called BEV (battery electric vehicles), a share of up to 25 percent of the total consolidated sales for the year 2025.

Our own future

What does Volkswagen yet? The economy segment, commonly called "Cheap car", was a permanent construction site under Winterkorn. Such vehicles are important especially in Asia, here you want to now work with partners in the region. In addition, new fields of competence should be established to avoid depending on external providers such as Google. When the subject of autonomous driving and artificial intelligence, you want to have the necessary resources at home. Target is the approval of a "proprietary competitive technical solution", so an autonomous vehicle until 2020. The battery technology is to be developed as a new field of competence.

Driving without possession

Second cornerstone is the establishment of a "cross-brand business field mobility solutions". Let's start with arranging transport services services on demand, to come Robotaxis, car-sharing or transport-on-demand in the future. Even if customers want to completely have no Audi, VW or similar, the group that wants to make money. 2025 to plan a relevant turnover in billions of dollars. For future topics in the "strategy 2025", Volkswagen total plans investments in the tens of billions. To have the money, the Group on efficiency is trimmed, the entire value chain in the automotive industry from the formation is affected to the distribution. But of course Captain Müller's also sees the financial targets what is brewing in the wake of exhaust affair over Wolfsburg and fits. In the Centre stands the profitability, so the operating margin is expected to increase to seven to eight percent by 2025. For shareholders: to 30 per cent of the annual net profits to be distributed effectively. (rh)