Jump to content
Create New...
  • William Maley
    William Maley

    Volkswagen's CEO Announces New Business Plan, Focus on Profit

      Volkswagen's CEO says the plan going forward is focusing on profit


    Nearly four years ago, Volkswagen made the pronouncement that it wanted to be the world's largest automaker by 2018. But in light of the diesel scandal, Volkswagen is taking that dream off the table and focusing on trying to survive.

     

    Today, Volkswagen Group CEO Matthias Müller announced a new plan called Strategy 2025 that will focus on improving profit rather than volume growth. The plan will be developed over the next few months and will be shown sometime next year.

     

    “Many people outside of Volkswagen, but also some of us, did not understand that our Strategy 2018 is about much more than production numbers. A lot of things were subordinated to the desire to be ‘Faster, Higher, Larger,’ especially return on sales,” said Müller in a statement.

     

    Along with the announcement of a new plan, Müller outlined some of the key steps that will help the company get off the shaky ground it currently finds itself on.

     

    The first step is to reduce the number of models Volkswagen and its sister brands produce. Currently, the Volkswagen group produces over 300 models around the world.

     

    "We will review in detail our current portfolio of more than 300 models and examine the contribution that each one makes to our earnings," Müller said to analysts on a call this week.

     

    Another priority for Volkswagen will be giving more independence to the brands and regions to allow a "culture of openness and cooperation" to develop.

     

    Source: Automotive News (Subscription Required), Car and Driver, Volkswagen

     

    Press Release is on Page 2


     

    Matthias Müller unveils next steps for the Volkswagen Group

    • Support for customers top priority
    • Volkswagen looks beyond current crisis
    • New strategy to be unveiled in 2016


    Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, has announced the five key steps to realign the Group. "We have to look beyond the current situation and create the conditions for Volkswagen's successful further development", said Müller in Wolfsburg on Wednesday. He presented a five point plan that he intends to use so that Volkswagen remains one of the world's leading automobile manufacturers in the future. Müller is confident that "Volkswagen will emerge from the current situation stronger than before". He announced that the cornerstones of the Group's Strategy 2025 will be presented next year.

     

    The Volkswagen CEO explained that his top priority is to support the customers affected by the diesel issue. "Our customers are at the core of everything that our 600,000 employees worldwide do", he said. According to Müller, Volkswagen is working intensively to develop effective technical solutions. In contact with the Kraftfahrtbundesamt (KBA – German Federal Motor Transport Authority) the implementation is set to begin in January 2016.

     

    Müller's second priority is to systematically drive forward and complete the investigation into what happened. "We must uncover the truth and learn from it", he said, adding that Volkswagen is being extremely thorough in its analysis. For this purpose, audit firm Deloitte has been engaged in addition to the steps already announced. According to Müller, those responsible for what has happened must face severe consequences.

     

    Müller's third priority is to introduce new structures in the Volkswagen Group. "The key point is that Group management will be decentralized to a greater extent in the future", he said, with more independence for the brands and regions. Müller stated that the Board of Management will focus on addressing cross-brand strategies, leveraging synergies and ensuring that Group resources are used effectively. "We will review in detail our current portfolio of more than 300 models and examine the contribution that each one makes to our earnings."

     

    As his fourth priority, Müller is driving forward a realignment of the Group's culture and management behavior. He noted that the pursuit of perfection, the employees' commitment and social responsibility in the Volkswagen Group must be retained. However, he believes that changes are necessary in how Volkswagen communicates and how it handles its mistakes. "We need a culture of openness and cooperation." Müller also called on everybody at Volkswagen to display more courage, greater creativity and a more entrepreneurial spirit in their dealings with one another.

     

    The Volkswagen CEO announced that the fifth priority will be to transform the Group's Strategy 2018 into a Strategy 2025. "Many people outside of Volkswagen, but also some of us, did not understand that our Strategy 2018 is about much more than production numbers. A lot of things were subordinated to the desire to be "Faster, Higher, Larger", especially return on sales." According to Müller, the point is not to sell 100,000 more or fewer vehicles than a major competitor. Instead, the real issue is qualitative growth. Müller announced that the cornerstones of the Group's Strategy 2025 will be developed over the coming months, and that it would be unveiled mid-way through next year.

    User Feedback

    Recommended Comments



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


  • google-news-icon.png



  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • Good Point, my 2006 Escalade ESV is 198.9 inches long, so round up to 199 inches and it fits in my garage, but the house was built in 1962. It cannot fit in my sister's newer house from 2007, so I cannot see how these even longer new EVs are going to fit in a modern garage unless they feel everyone will just park outside. WOW, parking lots that have small parking spots are going to be super tight with this car. Super long but not super wide as it is 4 inches shorter width than my Escalade.  That is weird, long and skinny? Tacky overall and does NOT say luxury to me.  Totally agree with @smk4565 that those plastic lines on the outside of the doors is TERRIBLE.  
    • Definitely need this as 300 hp in aa 5,000 lb car or whatever these weigh is adequate but not a lot.  I imagine it is easy to go to the Lyriq's 500 hp motors, swap in some better brakes and beef up the suspension a bit.   They should V-series all Cadillacs, especially if selling in China where they have all these 1,000 hp or 1,500 hp cars.
    • This thing is huge, I don't know why it is so big.  Unless they plan to kill off the LS, which they say they are not doing. The interior looks too sparse and boring.  Good that they did hybrid and full EV.   Looks too much like the Camry, and the moldings on the doors look weird.  I am so sick of plastic moldings tacked on doors, why can't car companies just make a metal door without cladding and molding all over it like a 1990s Pontiac.
    • Eron started out as a Legit business, a merger between Houston Natural Gas and InterNorth but then changed under CEO Kenneth Lay into energy trading and utilities, and I agree with you that they did commit fraud on many levels, but the review by the SEC showed that the last few years just before the collapse was when this all happened. So, two companies wanting to become bigger, merge, continue to have success and then move into other areas of possible growth, but due to incompetence by the executives on risky trading and other areas started to inflate profits to hide the trading losses.  The CEO was like a Gambling addict who wanted more and more and yet as he lost, he figured he could hide it till he struck it big and then right side out the company. Sadly, at the expense of so many people he destroyed the company and many employees and investors savings. I have NOTHING against the Technology or the people at Tesla who created very solid Motors, Controller boards and battery packs. My issue is with the person who bought himself a CEO position and the constant lies even now at the quarterly report on what Tesla will deliver. He now hides things, and I suspect the use of AI, Robots, FSD, Robotaxi, etc. are all used to conceal the shaky nature of Tesla. I do suspect Tesla is playing a house of cards and is not as secure as they tend to present. IMHO
  • Who's Online (See full list)

  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search