Volkswagen has come up with a strategy to ‘transform’ itself. The company has named it as TRANSFORM 2025+ program. The company apart from other things has declared that from now onward it will be focusing on E-mobility and connectivity to gain advantage over its competitors. The company has also been mired in legal suits related to emissions which has forced the company to make shifts in its policy.
The Chairman of the Volkswagen brand Board of Management, Dr Herbert Diess said “Our goals are high and our strategy is very ambitious. We want to benefit from change and to take Volkswagen into the lead in the new automobile industry with determination. Over the next few years, Volkswagen will change radically. Very few things will stay as they are. In the final resort, the new strategy is a major transformation program.”
In future, e-mobility will be part of the Volkswagen brand core. The e-mobility offensive is to be financed by a number of measures including the discontinuation of certain low-volume, low-earnings conventional models and model variants. This will release funds in excess of €2.5 billion for e-mobility. The CEO of the company stated
“From 2020, we will be launching our major e-mobility offensive. As a volume manufacturer, we intend to play a key role in the breakthrough of the electric car. We are not aiming for niche products but for the heart of the automobile market. By 2025, we want to sell a million electric cars per year and to be the world market leader in e-mobility. Our future electric cars will be the new trademark of Volkswagen,”
A leading role in connectivity
The brand will develop its own digital platform. By adopting this approach, Volkswagen will be moving closer to its customers on the one hand and developing new earnings potential with a comprehensive range of services on the other hand. By 2025, Volkswagen expects to have about 80 million active users throughout the world. This would mean that the brand would have the leading digital ecosystem in the entire automotive industry. Volkswagen estimates that its sales revenue from services related to networked vehicles will reach about €1 billion per year by 2025 and expects a significant contribution to earnings from this business area.
The company is also focusing on transformation of corporate culture and profitable growth through higher sales revenue and lower costs. The company wishes to expand its presence in North America and China.