Volkswagen's New Plan Brings Radical Changes
At a press briefing in Volkswagen's Autostadt exhibition center in Wolfsburg, the company outlined a major plan called 'TOGETHER—Strategy 2025'. The plan would see the company abandon its plans for world domination and rigid structure to try and catch with other automakers and even Silicon Valley in terms of technologies and environmental issues.
"Our future program ‘TOGETHER – Strategy 2025' will make the Volkswagen Group more focused, efficient, innovative, customer-driven and sustainable – and systematically geared to generating profitable growth. We aim to create lasting value for all our stakeholders. This can only be achieved together – with our employees, with and for our customers, shareholders, and business partners – while being fully aware of our responsibility toward society and the environment," said Volkswagen Group CEO Matthias Müller.
The first pillar of this plan is Volkswagen planning a major electric vehicle initiative. By 2025, the company is planning to have more than 30 new EVs on sale, with a sales target of two to three million. The 30-plus vehicles would be spread across the various Volkswagen brands. Volkswagen also plans on developing various battery technologies. Part of that could go towards a battery factory that we reported on earlier this month.
Pillar number two deals with Volkswagen developing technologies dealing with autonomous driving and artificial intelligence. By the end of the decade, Volkswagen hopes to have a system that can be licensed to other companies.
The final pillar deals with Volkswagen setting up a mobility-solutions business to develop and buy companies dealing with car and ride sharing, and robo-taxis. According to Bloomberg, the company hopes to generate billions of euros in revenue from this pillar by 2025.
Other items of note
- This shift will see Volkswagen spending more than 10 billion euros (about $11.2 billion) over the next ten years. Part of these investments come from cost-cutting measures that will include reviewing and streamlining their modular architectures, along with spending in research and development.
- Volkswagen reaffirmed its commitment to the U.S., a market which it hasn't able to crack. Although how committed Volkswagen is to this is unknown. It could involve the introduction of Skoda to the marketplace.
- Volkswagen is planning to extend its commercial vehicle reach into other markets. The Volkswagen Truck & Bus group is comprised Scania, MAN and Volkswagen Commercial Vehicles brands.
More details of this plan will be announced towards the end of year.