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Strategy
Strategy
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.
“The strategic realignment is taking effect, the brand is back on the offensive. We made tangible progress in all key action areas in 2017.”
Press releases
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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. -
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. -
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. -
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. -
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. -
Volkswagen Annual Media Conference 2018
Speeches and charts -
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. -
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. -
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".
Stories
Right on Schedule for E-Mobility
Volkswagen is making excellent progress. In 2017, the brand sold more cars than ever before – a clear indication of rebounding consumer faith. That is why brand chief Herbert Diess will be able to announce a powerful acceleration of business when he presents last year's results in Wolfsburg on the 14th of March, 2018. The new year started well, too, with positive sales figures and an impressive trade show appearance in Geneva, surrounding the new flagship of electro-mobility, the I.D. VIZZION.
