Volkswagen´s future is driven by massive changes encompassed as part of “Together—Strategy 2025”, VW has more than 630,000 employees worldwide, on of the biggest employers around the world and the only one in Top 15.
“2017 was a good year for the Volkswagen Group. It is the year Volkswagen shifted back onto the offensive,”CEO Müller.
In the years ahead, the company will invest more than €34 billion in e-mobility, autonomous driving, digitalization, and new mobility services.
By 2017, The United States Environmental Protection Agency exposed VW for deploying software meant to defeat emissions tests in different diesel engines. As the full outcome of “Dieselgate,” the executive team of VW, had to devise a viable execution plan for Strategy 2025, the impact of Volkswagen´s future can be massive and destroy years of effort and successes.
Strategy 2025 had four building blocks.
“We have breathed life into our strategy, launching hands-on projects to implement it, and breaking new ground in many areas. Above all, we presented Roadmap E, our roadmap for the electric age, and demonstrated how we want to make e-mobility attainable for all,”CEO Müller.
VW was also seeking partnerships with competitors. Together with BMW, Daimler, and Ford, it formed the pan-European high-power charging network IONITY, which other automotive manufacturers were invited to join.
Further, VW collaborated with Korean company Hyundai on fuel-cell development. It explored a non-equity strategic alliance with Ford to extend capabilities, strengthen competitiveness, and better serve customers. The goal is to increase to 500 km with standard batteries and 700 km with solid-state batteries by 2025 while the cost per kWh decreases.
Disruptive forces in the global auto industry
Industries around the world disrupted by several megatrends, such as a shift in the balance of economic power toward emerging markets, the arrival of new technologies, growing concerns over climate change, shifting demographics, and consumer preferences.
Own a car no longer seen as a status symbol and the rise of digital ridesharing platforms. Consumers were moving away from car ownership, which was leading to changes in automotive business models; moreover, growing concerns over carbon footprint were forcing automakers to adopt sustainability practices.
“We are already a different company today and will continue to change – with our new Group strategy based on central values and fair play,”Pötsch.
All green lights in the future of Volkswagen if they follow its strategy and adjust the steering wheel accordingly.