Published: June 20, 2016 | Wolfsburg, Lower Saxony
The Volkswagen Group is laying the foundations for lasting success in tomorrow’s world of mobility and its evolution into a world-leading provider of sustainable mobility by adopting a future program, TOGETHER – Strategy 2025.
By doing so, it has also launched the biggest change process in the Volkswagen Group’s history. The new Group strategy comprises a raft of far-reaching strategic decisions and specific initiatives essentially aimed at safeguarding its long-term future and generating profitable growth. This is to be achieved by comprehensively transforming the core automotive business, rapidly establishing a new mobility solutions business, significantly increasing efficiency as well as strengthening innovation power and entrepreneurial mindset and approach in the Company.
CEO Matthias Müller during the presentation of the new strategic direction in Wolfsburg, said:
Volkswagen has always enriched the lives of millions of people all over the world with its brands and products. Our aspiration is to continue that success story and play a leading role in shaping auto-mobility for future generations, too. 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.
TOGETHER – Strategy 2025 provides the framework and compass for the Volkswagen Group’s envisioned evolution from car manufacturer into a world-leading provider of sustainable mobility. It will be fleshed out with corresponding strategies for the Group brands to be gradually elaborated over the coming months. Volkswagen will present the detailed strategic program, broken down into brands and functions and backed up with specific measures and financial targets, before the end of the year.
This also includes the Volkswagen brand’s “pact for the future”, which the Brand Board of Management and the Works Council have been working on since early June. It involves significantly increasing efficiency, productivity and profitability with the aim of safeguarding competitiveness and jobs, and financing the necessary future investments in products and locations. In light of the brand’s importance within the Volkswagen Group, it will also play a key role in achieving the Group targets.
The regional growth strategy already initiated in particularly attractive automotive markets is being continued. The Volkswagen Group is affirming its expansion and investment plans already announced for North America and its continued expansion program in China. In this context, the Volkswagen Group intends to tap the economy segment – i.e. the segment comprising attractively-priced entry-level products that is, for instance, especially relevant for Asia – by partnering with regional players. Talks in this regard are at an advanced stage.
According to a report by CNET, Volkswagen’s plan also covers an in-house and an autonomous-vehicle system before 2020. Apart from these developments, the company is also eyeing to work upon a number of mobility options such as on-demand transportation by forging strategic partnerships and acquiring venture capital investments in an increasingly mobility-driven environment.