Wednesday, November 23, 2016

Volksvagen focuses on electric vehicles, mobility and technologies – automonitor

herbert-diess-ceo-group-vw

The Volkswagen Group announced yesterday the biggest transformation of its history, with the shift of focus from the production of conventional automotive for electric vehicles and new technologies including software development for the autonomous driving, connectivity and digital services, including mobility solutions, car sharing and ride sharing.

In the american market, where the image of the group foio quite affected by the scandal of emissions, there is a year, the group will no longer sell conventional cars with engines diesel and are going to bet in the large SUV, with propulsion technologies that combine engines, gasoline and electric.

3 million electrical 2015

At the press conference of its strategic plan Transform 2025+, the Group CEO, Herbert Diess (photo), stated that the goal is to reach one million electric vehicles sold under the Volkswagen brand, in that year, and a total of 3 million, if we count with the other group brands such as Seat, Skoda and Audi.

electric cars still have a marginal part of the global car market, but all large groups are currently investing in the development of alternative technologies to the combustion engine conventional. Last week, Toyota, the world leader in powertrain hybrid, announced that it will put on the market its first model 100% electric, already in 2018, and the BMW ensures that you will sell 100 thousand hybrid and electric vehicles, already in 2017.

The plan focuses future group’s investments in electric vehicle technologies, and software that allows new forms of use and car sharing. "In the next few years will fundamentally change the Volkswagen. A few things will remain as they are," said Diess was quoted by the Associated Press. "We want to be pioneers in the development of programs and hardware systems leaders in our industry for autonomous vehicles digitally connected to be a reality in 2025," said the CEO.

New models more adjusted to the U.S.

An important part of the plan starts by an increase in sales in the U.S., with the launch of new products more tailored to this market, such as the SUV and cars of larger dimensions than the europeans. The Volkswagen was strongly affected by the scandal of the emissions that erupted in September of last year and in aggregated sales from January to October, the brand could not more than 1.8% market share, behind competitors such as Chevrolet, Ford, Fiat, Chrysler, or Toyota. Diess attributes the poor performance of Volkswagen in the U.S. the fact that the group does not have, in the past few years, known to keep up with market trends and changing consumer preferences. To combat this failure, the Group will give greater autonomy and responsibility for decisions to their responsible for the american market.

Diess also announced that the group will produce electric cars in the U.S., as of 2011 the (news Automonitor HERE), in the factory Chattanooha (Tennessee), where he is today produced the Volkswagen Passat.

Goal: to triple the margins

The change of paradigm group, a manufacturer of conventional vehicles to a company that will bet in technology and in new mobility solutions, will imply a readjustment in the operations of production. The software and electric cars have production processes less complex and less labor-intensive, which, together with the need to reduce costs led the group to announce, at the end of last week, the waiver of the 30 thousand workers, of which 23 thousand-in Germany, a part of which are through agreements of voluntary termination (news Automonitor HERE). On the other hand, will be created 9 thousand new jobs in the areas of technology.

In the U.S., Volkswagen agreed to pay 15 billion dollars to compensate the owners of automobiles with engines equipped with a software that viciava the official results of the emission tests.

The strategic plan foresees a growth of the margin on sales of 2% in 2015, to 6% in 2025, as a result of the tight control of the cost, including the reduction by half in the number of directors.

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