“The Era of the Classic Carmakers is Over,” Says VW CEO

The Volkswagen Group’s CEO, Herbert Diess, is worried his company isn’t moving fast enough to stay relevant. At a board meeting this week, Diess expressed his concerns to the company.

“The big question is: Are we fast enough?” Asked Diess. “If we continue at our current speed, it is going to be very tough.”

The question comes just a few years into Volkswagen’s Vision 2025 master plan, which saw the company refocus itself on electric vehicles and cut down spending aggressively.

The move was designed to reposition the company after its diesel gate scandal, but Volkswagen is far from the only company moving into those spaces. Reports suggest that VW wants to increase its market valuation from 91 billion euros to 200 billion.

This will be achieved by investing further into electrification, cutting more costs by focusing less on hydrogen fuel cells, and focusing more on profit.

“Take Bentley for example, 10,000 deliveries,” Diess said. “It would have been even more impressive if we had a margin higher than zero. If I’m totally honest, I would have preferred 5,000 deliveries and a margin of over 20%.”

Volkswagen has to focus on its strengths and leave out everything that stands its way said Diess.

“The era of the classic carmakers is over,” Diess summarized.

source: Reuters