Scandal-hit VW turns its sights to electric cars
AFP
AFP, FRANKFURT: Embattled auto giant Volkswagen unveiled yesterday plans to launch more than 30 all-electric models by 2025 as it seeks to reposition itself as a leading player in environmentally sustainable modes of transport.
VW, currently entangled in a global engine-rigging pollution scandal, said in a statement that it plans to launch more than 30 fully electric models by 2025, which would account for annual sales of between two and three million vehicles or 20-25 percent of the groups global sales.
Presenting what he described as the key building blocks in the new group strategy, chief executive Matthias Mueller said VW aimed to transform its core automotive business or, to put it another way, make a fundamental realignment in readiness for the new age of mobility. VW would focus on the most attractive and fastest-growing market segments, he said.
Special emphasis will be place on e-mobility. The group is planning a broad-based initiative in this area: it intends to launch more than 30 purely battery-powered electric vehicles over the next ten years, he said.
VW, which has so far not been particularly active in the electric car sector, estimated that such vehicles could then account for around a quarter of the global passenger car market.
The strategic re-think has become necessary in the wake of VWs deepest-ever crisis after it came to light last September that it had installed emissions-cheating software into 11 million diesel engines worldwide.
It has already set side 16.2 billion euros ($18.2 billion) in provisions to cover the potential costs of the scandal. But experts believe the total cost could come out much higher.
VW, which owns 12 brands in all, ranging from Volkswagen to Audi and from Porsche to SEAT, has abandoned its long-cherished goal of becoming the worlds biggest car manufacturer, ahead of Toyota.
Size is not a goal in itself, said CEO Mueller, who was parachuted in to steer the group out of crisis, actively distancing himself from the philosophy of his predecessor Martin Winterkorn.
Another part of VWs Strategy 2025 would be to set up a brand new cross-brand mobility solutions business, Mueller announced.
The new division would develop and acquire offerings tailored to customer requirements -- centering on and starting with ride hailing, ie. on-demand mobility services.
Volkswagen already secured its first foothold in the ride hailing segment at the end of May, when it invested in a strategic partnership with on-demand mobility company Gett, it said.
