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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 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. -
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. -
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. -
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. -
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. -
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.” -
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
The visionary in China
Carl H. Hahn, former CEO of Volkswagen Group, in the 1980s brought the company to China. By creating an automotive industry, he worked with Volkswagen to fuel the country’s economic and social development. For his dedication to the country, China Newsweek has named Carl Hahn “Person of the Year.”
Operating return is to rise quicker
Volkswagen will further accelerate the pace of its transformation, Chief Operating Officer (COO) Ralf Brandstätter announces. The operating return on sales should reach at least 6 percent by 2022.
“There’s a misperception about the automotive industry.”
Volkswagen CEO Dr. Herbert Diess has criticized the way politics is handling CO2 emission limits and coal-based power, and warned against oversimplified accusations about climate protection. Here are some excerpts from the interview with German daily “Süddeutsche Zeitung”.
“Efficient production is the key to our future success”
The Volkswagen brand is setting itself ambitious goals, with plans to increase productivity by 25 percent at all German factories by 2020. An interview with Dr. Andreas Tostmann, member of the Board of Management responsible for Production and Logistics.
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 ID. VIZZION.
