VW release EV strategy

Volkswagen plans to introduce more than 30 electric vehicles (EVs) to its line-up by 2025, as it looks to recover from the emissions-cheating scandal. The announcement is part of a top-to-bottom review of the German automaker, called ‘Together - Strategy 2025’. As part of that plan, Volkswagen will sell two-three million electric vehicles per year, and will increase its in-house expertise in battery technology. The strategy is the biggest change process in the brand’s history and will see Volkswagen’s core business focus on electric vehicles (EVs) and mobility solutions. Chief executive Matthias Mueller said of the new strategy: “This will require us – following the serious setback as a result of the diesel issue – to learn from mistakes made, rectify shortcomings and establish a corporate culture that is open, value-driven and rooted in integrity.” He adds that the automaker aims to play a leading role in shaping auto-mobility for future generations, which includes licensing a self-driving system developed in-house by the end of the decade. Along with this, Volkswagen will establish a cross-brand mobility solutions business, starting with ride-hailing services. Volkswagen then aim to focus on other services including robotaxis, car-sharing and transport on-demand. Mueller says: “The crisis partly eclipsed what we attained as a group over the last few years. But there is a lot more to Volkswagen than diesel.” While there will still be a focus on developing and selling internal combustion engines, Volkswagen will need to develop more electric vehicles to meet increasingly strict government limits on emissions. The strategy also seeks to increase profit margins to between seven and eight per cent by 2025, up from the current six per cent. This is especially important for the core Volkswagen brand, which is only just earning a profit. Two-thirds of the group’s profits in the first quarter came from luxury brands, Audi and Porsche. The automaker will further seek to achieve around $12 billion in annual savings through 2025. Volkswagen will also seek to make its management more open to advice from outside sources and consulting partners. Mueller says: “Our most important currency is trust.”