Volkswagen: From Dieselgate to Innovate

16 Jun 2016 | 10.01 am

Volkswagen: From Dieselgate to Innovate

VW making big bet on battery vehicles

16 Jun 2016 | 10.01 am

German car maker Volswagen has unveiled a radical new strategy to move the company on from ‘Dieselgate’.

The plan, ‘Together – Strategy 2025’, seeks to reassure investors that the company will return to profitability after a turbulent year of fines and litigation following revelations of its cheating in emissions tests.

Volkswagen CEO Matthias Müller (pictured) explained: “Our future programme will make the Volkswagen Group more focused, efficient, innovative, customer-driven and sustainable.”

The company set a target to improve its operating margin before exceptional items from 6% last year to 7-8% by 2025, through a mixture of reining in ballooning costs and expanding into new technologies.

Volkswagen intends to limit its capital expenditure and research and development, while it also plans to expand into electric and self-driving cars.

To improve the competitiveness of its core Volkswagen brand, VW plans to launch more than 30 purely battery-powered electric vehicles (BEVs) over the next ten years, and forecasts that its own BEV sales will be between two and three million units in 2025.

The company also stressed its partnership with the ride-sharing company Gett, which will allow it to gain a foothold in the fast growing on demand ride-hailing market, dominated by Uber.

On the cost cutting side, however, the firm is limited by its reluctance to shift more production from Germany to lower cost countries, in a bid to placate uppity unions.

 

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