Volkswagen bets on electric and self-driving cars, and makes its debut in the low-cost car sector. These are some of the key points of the new strategy of the German group, presented in Wolfsburg by Matthias Müller, chairman of the board of management of VW. Müller, the manager who replaced Martin Winterkorn after the dieselgate scandal, described the new strategy as "the biggest change in the history of the Volkswagen group" and said the group wants to become "the world leader in sustainable mobility".
Müller exhibited 15 initiatives, including the merger of the auto components business into a separate division (with 26 factories and 67 employees)? and the implementation of "regional agreements to be successful in the field of low-cost cars", a field in which the group has so far managed to break through.
As far as new technologies are concerned, VW is firmly betting on theelectric car, with the aim of arriving in 2025 to produce 2-3 million vehicles a year on batteries:?30 electric propulsion models will be launched by that date. As for the self-driving car, the first self-driving car produced by the group will arrive on the market in 2021 and will require investments of several billion euros: according to Müller, the mobility services sector will contribute in 2025 "several billion euros in turnover”.
Financially, VW aims to get savings of at least 8 billion euros a year by improving the efficiency of investments, research and development and operating costs. The weight of investments will have to drop between now and 2025 to 6% of turnover, compared to the current 6,9%; target 6%?of the turnover for R&D expenses?and 12%?for administrative and sales expenses, with a weight more in line with the competitors' average. The profitability target in 2025 (margin on turnover) is 7-8%?vs the current target of 6%;?the return on capital must exceed 15%. The strategy of the individual brands and of the various regions will be presented - said Müller - by the end of the year.
Meanwhile, Volkswagen continues to pay the consequences on the markets dieselgate:?its car sales in May in Europe went up by 8,8%?against the +16%?in the EU countries;?the most important factor was the +4%?of the brand of the same name.
