- The objective is to improve gross profit
- More distinct designs between each car brand
- Invest in software-enabled tech, EV platforms, autonomy.
After more than 100 days as CEO of Volkswagen Group, Oliver Blume has outlined a 10-point plan to ensure profitability as it recovers from the infamous diesel emissions cheating scandal and Attempts to rapidly transition to electrical mobility.
“The direction is right. We will begin implementation in 2023,” Bloom told investors.
“Our ambition is to maintain a leading market role in the world of e-mobility with first-class products and services – with convincing design, technology and user experience.
“We continue to build a balanced global presence – in Europe and China and with a strong third pillar in North America.”
Bloom replaced Herbert Diess in September 2022, overseeing the transition to electric vehicles, the launch of the Modular Electric Toolkit (MEB) electric platform, and the introduction of much-criticized new infotainment software and controls.
The master plan focuses on the group’s car brands, such as Volkswagen, Skoda, Cupra, Audi, Porsche and Bentley as follows.
Aim to improve capital utilization and cash flow.
Financial sustainability is a top priority, so the group will further reduce the break-even point (where total cost and revenue are equal).
Optimizing product strategy, while developing clear design languages between each brand.
Volkswagen will also examine “how it can take icons like the Golf or Tiguan into an electric future”, while the group will “reset the design and quality division” with the help of Audi and Porsche.
Volkswagen Group wants to double deliveries of electric cars by 2023.
It will also strengthen its technological development in China and develop autonomous driving technologies in partnership with Horizon Robotics.
With production of the Volkswagen ID.4 medium electric SUV now underway at its Chattanooga factory in Tennessee, the German automaker will look to expand and localize its supply chain capacity in North America.
This allows it to “further diversify its business in light of geopolitical developments” and offer the rugged all-electric Scout pickup truck and SUV.
Volkswagen ID.4 1st
Volkswagen Group subsidiary Caride will continue to develop its in-car software technologies, safety assistance systems and autonomous driving, while exploring areas for third-party alliances.
The software will continue to improve “current volume models” with electric driving ranges of up to 700km and 200kW DC fast charging capability. The former has already been confirmed in the Volkswagen ID.7 sedan and wagon preview.
In 2024, it will introduce “high-performance software for our premium brands” with a long-term goal for a unified software platform for the group expected to debut in 2026.
The German company has agreed on a timeline for the vehicle’s plans “over the coming years” based on a new software roadmap.
It has defined “technology profiles” for SSP, which will be rolled out for all brands by 2030.
Each car brand is also assigned “power ranges” responsibilities to avoid overlap.
Battery, charging and energy
Volkswagen Group has decided on three of the six battery factories in its roadmap.
A plant in Eastern Europe will be finalized and sites in Canada will be investigated soon. It has already signed a memorandum of understanding on raw material security with the latter government by the end of 2022.
The German company has also launched its joint venture with green energy company Enel in Italy to achieve its goal of installing 45,000 fast charging points globally by 2025.
It has signed a plan to introduce a mobility app in 2024 and it will apply to all group brands, covering services such as car financing, leasing, rental and subscription models.
The mobility platform is being built with rental car company Europcar.
Meanwhile, it is evaluating the business model of mobility-as-a-service schemes after pulling out of backing from autonomous driving ride-share startup Argo AI. For private self-driving mobility, Audi and Porsche will continue to develop.
The Volkswagen Group is currently redesigning its sustainability strategy with “ambitious” environmental, social, and governance (ESG) goals.
Each brand and division will have its own ESG goals with individual responsibilities.
It will develop “virtual equity stories for our brands and value drivers across the group” to visualize strengths and drive long-term value.
The first results will be presented to investors in the second quarter of 2024.