The head of the Volkswagen Group predicted a quick death for traditional automakers if they very quickly did not learn how to navigate in an ever-changing reality. VW intends to cut costs and actively introduce new technologies.
Herbert Diss decided on a programmatic statement: in order not to repeat the fate of the Nokia brand (which, having refused to improve its products, lost its leadership in the market), the Volkswagen Group should accelerate the reform of its own strategy.
The concern should, according to the head, invest more actively in the development of the latest technologies – for example, online services, unmanned vehicles and the like. In addition, Herbert Diss noted the increasing pressure on car manufacturers from environmental authorities, which leads to the need for the active introduction of electric vehicles or at least hybrid power plants.
All of the above requires a reduction in expenditure in order to maintain profit margins, and the next element of the strategy on which VW plans to concentrate is to reduce costs and increase productivity.
According to Reuters, one of the key goals of the VW Group today is to increase the market value of the concern to 200 billion euros, that is more than double.
“So this is probably the most difficult task Volkswagen has ever faced,” said Diss, while noting that the era of classic automakers is drawing to a close.