VW Presents Three-Stage Strategy Until 2025

By focusing on re-positioning the brand across various regions and segments, as well as on making huge investments in e-mobility and connectivity, VW hopes to get people back on their side.

In fact, the brand’s new vision is – “Volkswagen: Moving People Forward”, which the German automaker is looking to do with the help of their TRANSFORM 2025+ program, thus seeing themselves return to a sustainable, profitable growth.

“Our goals are high and our strategy is very ambitious,” said VW CEO Dr Herbert Diess. “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.”

The brand’s reorientation will take place in three phases. Phase 1, leading up to 2020, will see VW restructure their core business while also developing new competences. In Phase 2, up to 2025, has the automaker taking the lead in e-mobility as long as it can regain strength as a leading and profitable volume manufacturer. The final phase will include the brand playing a key role in shaping this major transformation in the industry, which is expected to take place after the year 2025 and leading into 2030.

“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,” added the brand CEO.

In terms of connectivity, VW expects to have about 80 million active users throughout the world by the year 2025 – with sales revenue from services related to networked vehicles estimated to reach about €1 billion per year within the same period.

In North America, VW plans on focusing on large SUVs and limousines, two segments that will be greatly expanded according to Diess. In a second stage, the automaker will take their new electric vehicles to the US, with local production of MEB cars to start from 2021.

As for China, VW will start an SUV offensive followed by quickly launching multiple electric vehicles. In other major markets such as India, South America and Russia, they will push to further develop the economy segment.

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