Volkswagen said it would transform itself into a company focused on electric-mobility and it would optimize its operations in order to become more efficient.
Called “Together – Strategy 2025″, Volkswagen’s new long-term plan includes the launch of more than 30 purely battery-powered electric vehicles over the next ten years, estimating that such green models could then account for around a quarter of Group’s global passenger car sales, equivalent of around 2-3 million units. In order to hit its targets, the company said investments in the double-digit billions of euros would be needed by 2025 for the whole transformation process that also calls for “portfolio optimization” and “realigning the components business” by bundle them together, units that currently spread across 26 plants worldwide with 67,000 employees. It also aims to reduce its sales and administration costs to less than 12 percent of sales and achieve an operating return on sales before special effects of 7 to 8 percent by 2025, up from 6 percent in 2015.
“Our future program will make the Volkswagen Group more focused, efficient, innovative, customer-driven and sustainable – and systematically geared to generating profitable growth,” CEO Matthias Muller said. To overcome the cheating scandal, Volkswagen needs to “learn from mistakes made, rectify shortcomings and establish a corporate culture that is open, value-driven and rooted in integrity.” The company said it would present the detailed strategic program, broken down into brands and functions and backed up with specific measures and financial targets, before the end of the year.