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Company

Strategy

Logo Transform 2025+

The Volkswagen brand is completely realigning with its TRANSFORM 2025+ strategy. Step-by-step, the brand is evolving into a leading, profitable volume manufacturer and is also seeking to play a leading role in the new world of automobility. Our target is to sell about one million electric cars per year by 2025 and to be the market leader in e-mobility.

The biggest model offensive in the brand’s history is at the heart of our strategy. Over the coming years we will be launching more than ten new models per year. The first phase focuses above all on SUVs: we will be widening our global SUV lineup to 20 models by 2020 and SUVs will account for up to 40 percent of sales volume.

The second phase from 2020 sees the launch of a new generation of fully-connected electric cars. Our I.D. family is based on the new Modular Electric Toolkit (MEB). With the MEB we are aiming to set an industry benchmark that extends to software and the ecosystem as well as the electric car. The brand mission: the iconic car of the electric age must be a Volkswagen.

We are improving the brand’s competitiveness in order to finance the necessary investments in the future from our own resources. The operating return on sales is to progressively increase to 6 percent by 2025. With the Zukunftspakt, the management and Works Council agreed a joint program to improve efficiency and productivity that is being systematically implemented.

A further key element of the TRANSFORM 2025+ strategy is the fundamental realignment of the organization. Flat hierarchies, an open discussion culture and entrepreneurial courage lay the groundwork for the transformation of the company. This is underpinned by a new mission statement and concrete targets for earnings power, sustainability and employer attractiveness. The strategy also includes a new leadership model and a broad-based integrity campaign.

“Last year, Volkswagen posted new records for unit sales and sales revenue. Our efforts are paying off. The transformation of the Volkswagen brand is making progress.”

Press releases

  • Volkswagen significantly raises electric car production forecast for 2025
    12/27/19
    E-mobility

    Volkswagen significantly raises electric car production forecast for 2025

    Volkswagen’s electric offensive has picked up speed as planned. With the world premiere of the new all-electric ID.3 in September and the start of production at the Zwickau electric vehicle plant in November, the Volkswagen brand has already reached major milestones. 2020 will be dominated by the market introduction of the ID. family. The first ID.3 cars will appear on Europe’s roads in the summer. Over the next few years, Volkswagen intends to become the world market leader in e-mobility and is investing €33 billion in these efforts throughout the group by 2024, including €11 billion in the Volkswagen brand. Under the latest plans, the strategic target of one million electric cars is expected to be reached end of 2023, two years earlier than previously predicted. The Volkswagen brand expects 1.5 million electric cars to be produced in 2025.
    Read on
  • Volkswagen making good headway with transformation
    12/19/19
    Company

    Volkswagen making good headway with transformation

    The Volkswagen brand will be launching 34 new models worldwide next year, including twelve SUVs and eight electric or hybrid vehicles. Volkswagen COO Ralf Brandstätter commented: “We are at the beginning of a new era. We mean business with e-mobility. The brand will be investing €19 billion in future technologies through 2024, €11 billion alone in the further development of e-mobility. And Volkswagen starts the biggest electric offensive in the automotive industry next year: The ID.3 goes on sale in the summer, soon followed by the ID.Next, our first electric SUV. Our ID. family makes emission-free mobility accessible to many people for the first time. That is New Volkswagen.”
    Read on
  • ‘Project Qatar Mobility’: Self-driving shuttles set to take Doha's local public transport to the next level in 2022
    12/14/19
    Volkswagen Group News

    ‘Project Qatar Mobility’: Self-driving shuttles set to take Doha's local public transport to the next level in 2022

    For the first time ever a cutting-edge fleet of self-driving Level 4 electric shuttles will usher in a new era of urban mobility in a capital city in 2022: Earlier today in Doha, representatives of Volkswagen AG and the Qatar Investment Authority (QIA) signed the ‘Project Qatar Mobility’. The goal is to develop a ground-breaking autonomous transport project and transform the future of urban mobility to a sustainable and commercial deployment of AD shuttles and bus services – even beyond 2022. Fostering a cross-brand collaboration as blueprint for future Autonomous Driving (AD) solutions, Volkswagen Commercial Vehicles, Scania, MOIA and AID-Autonomous Intelligent Driving will play an important role in this project. During the largest sporting event in the world, Qatar will thus be the venue for the world’s first emission-free, electric and autonomous public transport system.
    Read on
  • Volkswagen confirms strategic financial targets of Together 2025+
    11/18/19
    Volkswagen Group News

    Volkswagen confirms strategic financial targets of Together 2025+

    The Volkswagen Group has in principle confirmed the strategic targets set out in its strategy Together 2025+ for operating return on sales, return on investment, capex ratio and R&D cost ratio, net cashflow and net liquidity within the Planning Round 68. “We are continuing to pursue our ambitious strategic financial targets for 2020 and 2025. We also confirm our outlook for 2019. The Volkswagen Group remains very robust in the face of increasingly difficult economic conditions. However, we will have to apply systematic cost discipline to reach our long-term goals,” Frank Witter, the member of the Volkswagen Group Board of Management responsible for Finance and IT, said in describing the impact of Planning Round 68 on the strategic financial targets.
    Read on
  • Volkswagen investing strongly in the future
    11/15/19
    Volkswagen Group News

    Volkswagen investing strongly in the future

    The Volkswagen Group is continuing to invest strongly in its future. As part of Planning Round 68, the investment plan for 2020 to 2024* has been drawn up. The plan was dis-cussed during today’s meeting of the Supervisory Board and approved. The Group plans to spend nearly EUR 60 billion on the future areas of hybridization, electric mobility and digitalization in the next five years. This amounts to slightly more than 40 percent of the company’s investments in property, plant and equipment and all research and development costs during the planning period. Compared with the Group’s last Planning Round, it represents an increase of around 10 percentage points. The Group intends to invest around EUR 33 billion of this figure in electric mobility alone.
    Read on
  • Productivity in plants is increasing more than expected
    09/26/19
    Company

    Productivity in plants is increasing more than expected

    The Volkswagen brand is well on its way to achieving its own goals for more cost-effective vehicle production. Following the launch of the new production strategy TRANSFORM.TOGETHER last year, initial successes are now emerging. Board member for production and logistics Andreas Tostmann commented the interim review with 500 leading managers at an international conference: "The figures demonstrate that our strategy is working. In 2019, our productivity will have improved by more than 6 percent. And for the first time since 2013, we lowered the costs per vehicle in production. The workforce did an extraordinary great job here and I thank them very much for their achievements. We have demonstrated team spirit, and with our new models we managed strong and smooth starts of production. With great competence, our colleagues consistently contribute to increasing production efficiency and productivity. We will continue along our chosen path. Especially in a time of global economic uncertainties, we are well advised to make ourselves crisis-proof. To do what is in our hands so we are prepared for what is not in our hands. "
    Read on
  • Volkswagen Group Research becomes Volkswagen Group Innovation
    09/24/19
    Company

    Volkswagen Group Research becomes Volkswagen Group Innovation

    International network of ideas, continuous cooperation with all brands and drivers of expertise: Volkswagen Group Research has been an incubator for innovative vehicle and mobility solutions for 50 years now. It has been consistently restructured and positioned to further enhance its technological leadership. An international, comprehensive research approach lies at the core of what is now “Volkswagen Group Innovation” – with shared responsibilities at new Innovation Centers. The future-oriented alignment within the innovation fields of artificial intelligence, augmented reality, solid-state energy systems and autonomous driving drives this turnaround as a transformation initiative within the context of Volkswagen’s TOGETHER 2025+ strategy.
    Read on
  • Volkswagen agrees digital transformation roadmap for administration and production
    06/05/19
    Company

    Volkswagen agrees digital transformation roadmap for administration and production

    Volkswagen continues to forge ahead with the company’s modernization and digitalization: Volkswagen will be investing up to €4 billion in digitalization projects through 2023 – mainly in administration but also in production. At least 2,000 new jobs related to digitalization are to be created. This has been agreed by the Board of Management and the General Works Council in their “digital transformation roadmap”. Agile working methods, improved processes and digitalization are to reduce the burden on employees and speed up processes. Tasks that used to be performed manually are to be simplified through improved IT. Consequently, up to 4,000 jobs in non-production units at Volkswagen AG Passenger Cars, Volkswagen Group Components and Volkswagen Sachsen GmbH will not be restaffed over the coming four years. A precondition for this is that tasks are eliminated as a result of digitalization, process optimization and organizational streamlining. In addition, further investments in Industry 4.0 and an associated increase in productivity of five percent per year in production units through 2023 were also agreed. Furthermore, the budget for training is to be increased by a further €60 million to a total of €160 million to take account of the human resources transformation under Volkswagen’s digitalization offensive. A uniform employment guarantee for Volkswagen AG and Volkswagen Sachsen GmbH through 2029 has also been agreed.
    Read on
  • China plays key role in Volkswagen Group’s e-mobility strategy
    04/15/19
    Volkswagen Group News

    China plays key role in Volkswagen Group’s e-mobility strategy

    China will play a key role in the Volkswagen group’s global transformation and its accompanying decarbonization program. Thus, this year will see an intensified roll-out of new energy models. Volkswagen Group China aims to produce more than half of the group’s global objective of 22 million BEVs by 2028. To speed up its e-offensive, it will also launch a new joint venture in charging infrastructure. All this will lay the foundation for wide acceptance of e-mobility. Meanwhile, in the area of future technologies, Volkswagen Group China is combining its research power, with Volkswagen brand, Audi and Group R&D working together within the new ONE R&D structure.
    Read on
  • Volkswagen brand steps up pace of transformation
    03/13/19
    Company

    Volkswagen brand steps up pace of transformation

    Volkswagen will be boosting the pace of its transformation following a solid fiscal year 2018. The brand is taking important steps this year to strengthen competitiveness on a sustained basis. This includes the start of the electric offensive, efficiency measures in production and further progress in productivity and margins. At the same time, the brand is rolling out an earnings improvement program aimed at achieving a sustained contribution of €5.9 billion from 2023. Measures include reducing complexity and optimizing material costs. The program will gradually start delivering results in the period from 2019 to 2022. Furthermore, efficiencies in administration are to be leveraged by a stronger focus on process digitalization. Furthermore, efficiencies in administration are to be leveraged by a stronger focus on process digitalization.
    Read on
  • Volkswagen develops automotive industry in Ethiopia
    01/28/19
    Company

    Volkswagen develops automotive industry in Ethiopia

    Volkswagen brand continues its engagement in emerging countries in Sub-Saharan Africa. In the presence of Frank-Walter Steinmeier, President of the Federal Republic of Germany, a Memorandum of Understanding (MoU) was signed by Thomas Schaefer, Head of the Volkswagen Sub-Saharan Africa Region, and the Commissioner of the Ethiopian Investment Commission (EIC), Abebe Abebayehu, today. Thereby, Volkswagen is taking the fast development of the country into account. Over the last ten years, the GDP growth rate in Ethiopia was above 8 percent – one of the highest worldwide. Moreover, Ethiopia is a priority and focus country for Germany under the G20-“Compact with Africa” initiative.
    Read on
  • Volkswagen brand to speed up operating return
    12/06/18
    Company

    Volkswagen brand to speed up operating return

    The Volkswagen brand is to significantly improve its earnings performance in the coming years in order to finance investments in future technologies from its own resources. To this end, the model portfolio is being streamlined and the number of variants reduced. At the same time, productivity at the plants is to be increased and the platform orientation for vehicle production extended. Optimizing material costs is to contribute significantly to achieving the target return – without detracting from product substance. Administration processes will become even leaner. “We must force the pace of our transformation and become more efficient and agile. We cannot let up in our efforts and must realize further substantial improvements. What we have achieved so far is still not enough,” said Ralf Brandstätter, the brand’s Chief Operating Officer responsible for day-to-day business.
    Read on
  • Charge your electric car while you shop: Volkswagen and Tesco now partners in the UK
    11/30/18
    Company

    Charge your electric car while you shop: Volkswagen and Tesco now partners in the UK

    Volkswagen is working to develop areawide charging infrastructure for electric cars. This is why the brand has embarked on a strategic partnership with the Tesco supermarket chain in the UK. Over the next three years, more than 2,400 electric vehicle charging bays are to be rolled out at 600 Tesco stores. The cooperation will create the largest electric vehicle charging network in the British retail sector. The stations are to be operated by Volkswagen and Pod Point, one of the leading providers of charging infrastructure in the UK.
    Read on
  • Volkswagen implements electric strategy consistently
    11/14/18
    Volkswagen Group News

    Volkswagen implements electric strategy consistently

    Following Zwickau, Volkswagen intends to change its plants at Emden and Hanover in Germany over to the production of electric vehicles. After Zwickau, Volkswagen is there-fore establishing its second e-mobility center in Germany in Lower Saxony. CEO Dr. Her-bert Diess: “Volkswagen is implementing its electric offensive consistently. We are orient-ing the company towards clean mobility. This way, we are also ensuring sustainable pro-spects for the future of the two plants.” At a works meeting held on Wednesday in Emden, HR Board Member Gunnar Kilian outlined the principles of the project to employees. In Hanover, the Chairman of the Brand Board of Management of Volkswagen Commercial Vehicles, Dr. Thomas Sedran, presented the plans. The orientation towards the production of innovative electric vehicles is part of the plant allocation plans on which the Supervisory Board will decide in Wolfsburg on Friday.
    Read on
  • Volkswagen nominates further battery cell supplier
    11/13/18
    Volkswagen Group News

    Volkswagen nominates further battery cell supplier

    With the South Korean battery cell manufacturer SK Innovation (SKI), the Volkswagen Group has named a further strategic supplier for electric vehicles based on the Modular Electric Toolkit (MEB). SKI will supply the batteries for North America and a share of the batteries for the production of Volkswagen Group full-electric vehicles in Europe. The most important strategic suppliers of battery cells for the equipment of the Group’s rapidly glowing electric fleet in the major regions of the world have therefore been nominated.
    Read on
  • Volkswagen targeting further boost in factory productivity
    09/27/18
    Company

    Volkswagen targeting further boost in factory productivity

    The Volkswagen brand’s TRANSFORM.TOGETHER production strategy targets a 30 percent increase in productivity worldwide by 2025 compared to 2018. Production is therefore making a major contribution to achieving the profitability target of over 6 percent for the brand. “We want to rank among the best for productivity. We need to generate competitive returns to enable us to make key investments in the future and thus safeguard today’s jobs tomorrow and beyond. Together, we are ushering in a new era in Production for the Volkswagen Passenger Cars brand. This is about nothing less than a paradigm shift: from a product-oriented company to a production-and process-oriented company. For Prodution, that means our department will be more important than ever going forward”, Dr. Andreas Tostmann, the Volkswagen Brand Board Member for Production, commented at an event held at the Berlin Motorwerk location attended by 500 managers from Volkswagen’s 17 vehicle manufacturing plants.
    Read on
  • Volkswagen’s digital transformation gathers speed
    08/23/18
    Company

    Volkswagen’s digital transformation gathers speed

    Volkswagen in transition: the company is speeding up the development of its ecosystem with its own software know-how and the strength of external partners. The automobile will evolve into a central hub in the Internet of Things.
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  • Volkswagen plans to produce some 1 million vehicles in Wolfsburg
    08/17/18
    Company

    Volkswagen plans to produce some 1 million vehicles in Wolfsburg

    Looking to the future, production volumes at the main plant in Wolfsburg are to rise to around one million. Higher productivity will enable higher capacity utilization. The groundwork is being laid in Wolfsburg in order to bundle Golf production at one location as set out in the Pact for the Future. Coinciding with the launch of the Golf 8, Golf production in Zwickau and Puebla is to be relocated to the main plant. The new SEAT Tarraco will also begin rolling off the assembly line in Wolfsburg soon. Dr. Andreas Tostmann, Member of the Board of Management of the Volkswagen Brand responsible for Production and Logistics, commented: “We are planning to increase productivity by 25 percent at all German factories by 2020 as agreed. Further efforts are needed at Volkswagen in future to remain competitive, particularly post-2020.”
    Read on
  • Volkswagen is systematically and vigorously advancing its electromobility offensive in China
    07/10/18
    Volkswagen Group News

    Volkswagen is systematically and vigorously advancing its electromobility offensive in China

    The Volkswagen Group is expanding its successful business relationships in the People’s Republic of China. As part of the 5th German-Chinese government consultations, the Volkswagen Group China signed letters of intent with a long-time joint-venture partner, the FAW Group, and with the China Intelligent and Connected Vehicles (Beijing) Research Institute Co. Ltd. (ICV). The agreements cover the areas of e-mobility, connectivity, mobility services and autonomous driving. A day earlier, the Volkswagen Group China joined the automakers JAC and SEAT in signing letters of intent in which the three underscored their commitment to e-mobility. The aim of the partnerships is to draw on the support of the Chinese partners and to systematically and vigorously fuel the company’s far-reaching electro-offensive and to apply new technologies.
    Read on
  • Milestone in Africa: Volkswagen launches local assembly and Car sharing in Rwanda
    06/27/18
    Company

    Milestone in Africa: Volkswagen launches local assembly and Car sharing in Rwanda

    The Volkswagen brand is expanding its engagement in Africa: today saw the start of its Integrated Mobility Solution in Rwanda that includes local vehicle assembly, innovative mobility services and a sales and service retail outlet CFAO Volkswagen Rwanda. Thomas Schäfer, CEO of Volkswagen Group South Africa and responsible for the Sub-Sahara region, officially launched the project in the capital Kigali in the presence of Rwanda’s President Paul Kagame. Volkswagen is thus taking the next step toward developing new up-and-coming markets. In a long-term perspective, the brand intends to play a leading role in the emerging automotive industry in Africa. With this engagement, Volkswagen is making a substantial contribution to Africa’s economic development.
    Read on
  • Volkswagen Group China’s mega-factory in Foshan will strengthen e-mobility strategy in China
    06/22/18
    Volkswagen Group News

    Volkswagen Group China’s mega-factory in Foshan will strengthen e-mobility strategy in China

    Through the completion of the Foshan Plant Phase II, the Foshan production site’s capacity will double from 300,000 to 600,000 cars annually. As the first SUV-model of the Volkswagen brand built by FAW-Volkswagen, the T-Roc successfully rolled off the line in April this year. Together with the Audi Q2L, which will also start production this year, it is a vital building block in the fast growing SUV segment.
    Read on
  • Volkswagen AG, Ford to Explore Strategic Alliance to Extend Capabilities, Strengthen Competitiveness, Better Serve Customers
    06/19/18
    Volkswagen Group News

    Volkswagen AG, Ford to Explore Strategic Alliance to Extend Capabilities, Strengthen Competitiveness, Better Serve Customers

    Volkswagen AG and Ford Motor Company today announce they have signed a Memorandum of Understanding and are exploring a strategic alliance designed to strengthen each company’s competitiveness and better serve customers globally.
    Read on
  • Successful financial year 2017: Volkswagen brand implements product and innovation offensive consistently
    03/14/18
    Company

    Successful financial year 2017: Volkswagen brand implements product and innovation offensive consistently

    The Volkswagen brand can look back on a successful financial year in 2017. The brand sold 6.23 million vehicles and improved sales revenue to €80 billion. For the first time in five years, the operating result before special items increased, reaching the highest level since 2012, at €3.3 billion. The return on sales (before special items) improved from 1.8 percent in 2016 to 4.1 percent. The Volkswagen brand has therefore outperformed its targets for 2017.
    Read on
  • Volkswagen makes rapid progress in realigning its North American strategy
    01/15/18
    Models

    Volkswagen makes rapid progress in realigning its North American strategy

    The Volkswagen brand continues to vigorously pursue its regional consolidation strategy in North America: Today Volkswagen launched the seventh generation of its most successful high-volume model in the region when the new Jetta celebrated its world premiere on the eve of the North American International Auto Show in Detroit. The Jetta is tailored precisely to the needs of customers in North America.
    Read on
  • Volkswagen's strategic realignment is delivering
    11/30/17
    Company

    Volkswagen's strategic realignment is delivering

    The Volkswagen brand is moving ahead with the transformation initiated under its TRANSFORM 2025+ strategy a year ago. Implementation is running at full speed and the core brand of the Volkswagen Group has made progress in all the key action areas over the past 12 months.
    Read on
  • TRANSFORM 2025+ Volkswagen presents its strategy for the next decade
    11/22/16
    Company

    TRANSFORM 2025+ Volkswagen presents its strategy for the next decade

    Volkswagen is comprehensively repositioning itself. The Board of Management of the Volkswagen brand has decided on the TRANSFORM 2025+ program which will set the course for the brand over the next decade and beyond. The new strategy focuses on clearer brand positioning across the various regions and segments, backed by significant improvements in efficiency and productivity. At the same time, the brand will be making massive investments in e-mobility and connectivity. Enthusiastic customers, earnings power ensuring a secure future, sustainable mobility and a new team culture will lay the foundation for the Volkswagen brand's journey to the future. The new vision which is valid throughout the world is: "Volkswagen: Moving People Forward".
    Read on

Stories

12/18/19
Company

"We are in the first wave of transformation"

Prof. Ferdinand Dudenhöffer from Duisburg’s CAR-Center Automotive Research is one of the best-known automotive experts. In an interview, he talks about the upheaval in the industry, the prospects for e-mobility and Germany as an automotive location.
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12/17/19
Company

New Volkswagen – how does a global brand reinvent itself?

New drive technology, new design, new logo. Volkswagen practically reinvented itself last year. “New Volkswagen” is an expression of this.
Read on
12/16/19
Models

SUV offensive: How we are strengthening the core business

In 2019, SUVs were fully on-trend. In line with this, Volkswagen celebrated two milestones, unveiled its smallest vehicle in the segment, and will in future be focusing on zero-emission SUVs.
Read on
12/13/19
E-mobility

How we are expanding our model range

The year 2019 was dominated by transformation and product offensives. Volkswagen is thus pursuing the major goal of transforming its fleet to e-mobility while at the same time, further expanding its market share and profitability.
Read on
12/12/19
E-mobility

“We” Ecosystem: How we are networking the world

In 2019, flexible mobility services were in high demand. Volkswagen therefore expanded its offering and will continue developing new value-added services at a central location going forward.
Read on
12/11/19
E-mobility

Volkswagen is becoming more connected

In 2019, Volkswagen pushed ahead with its drive to digitize its vehicles and production. The establishment of a cross-brand “Car.Software” organization within the Group is one element of this offensive. Volkswagen is also working with strong partners such as Microsoft, Amazon Web Services and Argo to focus on digital transformation in all areas.
Read on
12/10/19
E-mobility

Electromobility: Why we are focusing on E

With the ID.3, Volkswagen is ushering in a new era – that of mass electric mobility.
Read on
12/09/19
Company

What we do for the climate

2019 was dominated by climate protection and decarbonization. Volkswagen is all the more committed to e-mobility, clean electricity and a CO2-neutral supply chain. We give you a summary and five info graphics.
Read on
11/15/19
Company

"We increase the speed, once more!"

Volkswagen Group is resolutely pressing ahead with its transformation. Investments in the future fields of hybridization, electromobility and digitization will rise to almost 60 billion euros. Read more ...
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© Volkswagen 2020

The specified fuel consumption and emission data have been determined according to the measurement procedures prescribed by law. Since 1st September 2017, certain new vehicles are already being type-approved according to the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), a more realistic test procedure for measuring fuel consumption and CO2 emissions. Starting on September 1st 2018, the New European Driving Cycle (NEDC) will be replaced by the WLTP in stages. Owing to the more realistic test conditions, the fuel consumption and CO2 emissions measured according to the WLTP will, in many cases, be higher than those measured according to the NEDC. For further information on the differences between the WLTP and NEDC, please visit www.volkswagen.de/wltp.

We are currently still required by law to state the NEDC figures. In the case of new vehicles which have been type-approved according to the WLTP, the NEDC figures are derived from the WLTP data. It is possible to specify the WLTP figures voluntarily in addition until such time as this is required by law. In cases where the NEDC figures are specified as value ranges, these do not refer to a particular individual vehicle and do not constitute part of the sales offering. They are intended exclusively as a means of comparison between different vehicle types. Additional equipment and accessories (e.g. add-on parts, different tyre formats, etc.) may change the relevant vehicle parameters, such as weight, rolling resistance and aerodynamics, and, in conjunction with weather and traffic conditions and individual driving style, may affect fuel consumption, electrical power consumption, CO2 emissions and the performance figures for the vehicle.

Further information on official fuel consumption figures and the official specific CO2 emissions of new passenger cars can be found in the “Guide on the fuel economy, CO2 emissions and power consumption of new passenger car models”, which is available free of charge at all sales dealerships and from DAT Deutsche Automobil Treuhand GmbH, Hellmuth-Hirth-Str. 1, D-73760 Ostfildern, Germany and at www.dat.de.