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