Volkswagen CEO says carmaker faces identical destiny as Nokia with out pressing reforms, Auto Information, Automobilnews
FRANKFURT: Volkswagen (VW) Chief Government Herbert Diess stated the German carmaker must speed up its transformation to keep away from turning into one other Nokia, which misplaced its dominance within the handset market to Apple.”The large questions is: Are we quick sufficient?,” Diess instructed VW’s senior managers following a world board assembly on Thursday. “If we proceed at our present pace, it’ll be very robust.”
Volkswagen must shift from being a producer of automobiles towards a maker of cellular units, he stated.
“The period of the basic carmakers is over,” Diess added.
Volkswagen must get a grip on software program and car electronics in addition to producing a raft of electrical automobiles and batteries so it will probably adjust to stringent anti-pollution guidelines.”In abstract that is in all probability essentially the most troublesome problem Volkswagen has ever confronted,” Diess stated, including that in 2020 the carmaker ought to search to take care of revenue margins.
Volkswagen will search to chop down on complexity, hike productiveness and slash prices, significantly in Germany, Diess stated.
VW will lower assets dedicated to gasoline cells, since they won’t be as aggressive as electrical automobiles for not less than one other decade. VW can even lower the assets dedicated to its MOIA mobility companies unit.
“We have to scale back our engagement and stretch it, till the conditions for higher profitability are given,” Diess stated.